President Donald Trump will meet Tuesday with U.S. oil refiners and fuel distributors at the White House as his administration looks for ways to expand domestic refining capacity and lower gasoline prices.
AAA puts the national average for regular gasoline at about $4.10 per gallon on September 1, compared with $3.19 a year ago. Texas averaged about $3.64, while the Dallas metro average stood at about $3.70.
The White House expects Interior Secretary Doug Burgum, Energy Secretary Chris Wright and National Energy Dominance Council Executive Director Jarrod Agen to join representatives from small, medium and large refiners and fuel distributors.
Refiners running near capacity
The latest U.S. Energy Information Administration data show U.S. refineries operated at 97.4% of operable capacity during the week ending August 21. Gulf Coast refineries ran at 97.0%, while total U.S. operable capacity stood at about 18 million barrels per day.
A White House official said the administration wants “concrete, near-term steps” to increase refining capacity rather than relying only on new refineries, which can take years to build.
Reports identify San Antonio-based Valero Energy, Marathon Petroleum, Chevron and Delek US Holdings among companies expected at the meeting. Reuters reported that Exxon Mobil did not receive an invitation. The White House has not released a public attendee list.
Venezuela crude enters supply strategy
The administration also expects more Venezuelan crude to flow to U.S. refineries. The meeting follows Trump’s announcement of a U.S.-Venezuela oil agreement covering more than 65 billion barrels of proven reserves, as previously reported by The Dallas Express.
The 65 billion-barrel figure represents proven reserves in the ground, not oil already produced or ready for shipment. Venezuela will need substantial infrastructure investment before production can rise sharply.
Gulf Coast refineries play a key role in that strategy because many can process the heavier, sour crude common in Venezuela.
Iran war keeps pressure on prices
Fuel prices remain well above year-ago levels after the Iran war disrupted crude and refined-product flows through the Strait of Hormuz. AAA said last week that August was on track to become the most expensive August on record at the pump, with the national average remaining above $4 throughout the month.
Trump has accused refiners of gouging consumers and asked the Justice Department to examine gasoline pricing. Industry executives have pointed to tight refining capacity, crude costs and geopolitical disruptions as factors pushing prices higher.
The White House says Tuesday’s meeting will focus on increasing refining capacity and lowering gasoline prices.
Edouard threatens Gulf Coast operations
The meeting also comes as Tropical Storm Edouard strengthens near the Upper Texas Coast, as previously reported by The Dallas Express.
Reuters reported that Motiva Enterprises and Exxon Mobil prepared their Port Arthur and Beaumont-area refineries for possible high winds and flooding. Neither company had reduced refinery production as of Monday.
The National Hurricane Center reported at 10 a.m. Tuesday that Edouard had maximum sustained winds of 50 mph and was about 50 miles southeast of Port Arthur. Forecasters expected additional strengthening before the storm reached the northwestern Gulf Coast later Tuesday.
Provided by Dallas Express
