The US government is investing $150 million to boost domestic fuel production and reduce reliance on foreign oil. This investment will be used to restart an idled refinery and expand others.
What happened
The Energy Department announced that it will spend up to $150 million under the Defense Production Act to increase oil output, storage, and fuel shipping at US refineries. President Donald Trump signed a determination declaring US oil production, refining, and fuel logistics vital to national defense.
Energy Secretary Chris Wright stated that the funds will be used in partnership with private industry to bolster America's existing energy infrastructure. The investment is seen as a strategic move to support market forces in bringing additional capital to the energy industry.
The American Fuel & Petrochemical Manufacturers (AFPM) appreciated the Trump administration's acknowledgement of the importance of America's fuel refineries. Experts believe that the investment will help signal to the energy industry and financial markets that energy supply is a strategic national priority.
The Energy Department has not announced which refineries will receive the funding, but it is expected to make the selections soon. The investment comes as diesel prices have risen to $6.32 a gallon nationally, up from $3.63 a year earlier.
