The US Energy Secretary, Chris Wright, has announced that the administration is in talks to reopen closed refineries to produce more fuel.
What happened
Wright stated that the administration has been engaging with the owners of refineries that have closed in the past decade to explore the possibility of reopening them. The goal is to identify the most practical refineries to restart and increase fuel production.
One of the refineries being considered is Valero's refinery in Benicia, California, which was the most recent US refinery to shut down. Additionally, Phillips 66 had planned to shut its refinery near Los Angeles by the end of 2025.
The Energy Department has also announced that it will lend up to 315,000 barrels from the Northeast Home Heating Oil Reserve to help address high diesel prices. Furthermore, the administration plans to use the Defense Production Act to help Delek grow its refinery in Tyler, Texas.
American refiners are currently running at 95-100% capacity and have postponed scheduled maintenance due to high prices. The administration has also allowed commercial vehicles to use red-dyed diesel, a fuel normally only for off-road equipment.
