Trump, along with Ambani, launches an oil refinery in America after 50 years.

US President Donald Trump officially announced last Tuesday the country's first oil refinery to be built in 50 years. He further stated that this new refinery will be constructed with an investment from Reliance Industries, owned by Indian billionaire Mukesh Ambani.

In a post on the Truth Social media network, President Trump introduced this as a historic $300 billion deal and the largest deal in American history, and also expressed his gratitude to Reliance, India's largest private energy company, for this unique investment.

According to LSEG data, Reliance, which has a market capitalization of $206 billion, already operates the world's largest oil refinery in Jamnagar, India. Trump points out that this new American refinery, being built around the Port of Brownsville in Texas, will strengthen the country's national security and increase energy production. Furthermore, he expresses confidence that this project, which will bring billions of dollars in economic benefits, will be the cleanest oil refinery in the world. This project, being developed by America First Refining, is designed to refine 100% American shale oil.

By the time this refinery begins operations, global oil prices have also risen due to the escalating conflict in the Middle East. Especially with the war initiated by the US and Israel against Iran, there was significant instability in crude oil prices, which rose to nearly $120 by last Monday. However, rising fuel prices create a favorable situation for shale oil refiners. Currently, the price of a barrel of US crude oil has increased by 1.15% to $84.71, while Brent crude oil, a global benchmark, also rose by 1.33% to $88.98 per barrel.

Neither Reliance nor America First Refining has officially responded to this new project yet. However, a statement released by America First Refining last Tuesday indicated that they received a nine-figure investment under a ten-figure valuation from a leading global company. Although specific details about the investors were not disclosed, the statement further mentioned that a 20-year agreement has been reached with the said global company, under which shale oil produced in America will be purchased, refined, and distributed.

This massive refinery is expected to process 1.2 billion barrels of American light shale oil worth $125 billion, and 50 billion gallons of refined products valued at $175 billion are to be released to the market. As Trey Griggs, President of America First Refining, points out, while the US currently has a surplus of light shale oil, there isn't sufficient refining capacity to process it. Therefore, he emphasizes that the construction of this new refinery will further strengthen the domestic supply chain.