BRICS
March 10, 2026
The US oil sector could be heading into unfamiliar territory after Donald Trump’s refinery announcement that caught the entire globe off guard. In a recent post, Trump said that a massive Texas refinery will be built at the Port of Brownsville with backing from India’s Reliance Industries. According to the president, a whopping $300 billion will be poured into the development of the refinery. This project is expected to become the first new US refinery built in 50 years. He added,
“I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas.”
The refinery will be designed to process 100% American light shale oil. The US currently produces a surplus of shale crude, but it does not have enough facilities to refine it. America First Refining, the developer behind the project, said the plant could process about 1.2 billion barrels of US shale oil. In addition, it could produce 50 billion gallons of refined fuels over time.
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How the Texas Refinery and Reliance’s $300B Deal Reshape US Energy
The latest announcement comes as oil markets have been rattled by Middle East tensions. This is accompanied by fears of supply disruptions. Brent crude is hovering near $89 per barrel, while US crude traded around $84. Higher prices usually mean refiners can make more money, especially those processing shale crude.
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It should be noted that the US has unlocked vast reserves of shale oil in regions like the Permian Basin. According to the US Energy Information Administration, shale production now accounts for the majority of US crude oil production. Unlike heavier crude grades, shale oil is lighter, which means refineries need specific requirements to process it. The Texas refinery aims to bridge this gap.
Meanwhile, for Mukesh Ambani, Reliance’s US investment extends a refining empire beyond India. The firm is already running the world’s largest oil refinery in Jamnagar. Reliance itself carried a market capitalization of more than $200 billion.
Shares of Reliance Industries Ltd. (RELIANCE.NS) are suddenly under the spotlight. The stock was trading around 1,393 INR earlier today, down about 1.1%. Amidst this, analysts remain positive about the firm’s outlook. About 30-35 analysts place the average 12-month price target near 1,719 INR, with the most bullish forecast reaching around 2,020 INR.
If built at the scale that Trump describes, the Texas refinery could rank among the top projects in North America. This could be beneficial for both the US energy policy and Reliance’s global footprint.
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