Houston is one of the oil and energy capitals of the world, not just based on sheer production, but most energy companies call the city home as well. Massive brands to less famous brands, all reside here. That includes Element Fuels, which is now set to build the largest new refinery in the United States since the 1970s.
The new plant would be south of Brownsville, and all permits have already been issues for construction. The over $3 billion project is expected to produce more than 160,00 barrels of finished gasoline, diesel and jet fuel per day. Currently, it looks like the new refinery could be operation, at least the first phase, by 2027.
It is a unique thing in today's green energy push to build a new refinery. But energy expert David Holt says this new facility will not only help our massive demand, but it might even please the climate crowd.
"They intend to power most of the refinery with hydrogen, which would make it run cleaner, and meet all the environmental goals we need to meet," he says.
The first phase of the operation alone will help add 55,000 barrels a day, which is nothing to discount. That could help gas prices alone in a big way, especially since President Biden in his delusional wisdom decided twice to drain the strategic oil reserves.
But even outside of helping the wallet, this new refinery would help provide stable footing in the reliability department.
"We are seeing more fears...our energy is less affordable, and the big other fear is that energy is increasingly unreliable, and we will have more blackouts," he says. "Many political leaders have forgotten we need to ensure that energy is reliable."
Energy crisis situations are not uncommon to Houston. Anyone who survived the May 16th Derecho in 2024, or Winter Storm Uri in 2021, can attest to that.
While Element Fuels is leading the way and might put a dent in the energy concerns to a point, other states remain handcuffed to green new energy ideas that proclaim any refineries as bad. So, while this refinery might help a bit, we need other states to join in the cause.
"Maybe this refinery, and the fact they have permits and a good plan, might spur some expansion and new refineries...all that would mean progress," he says.
El Campo-based Southern Rock Energy Partners also confirmed a shale oil refinery, similar to Element Fuels’ refinery, but the company ultimately chose Oklahoma as its location.
The Element Fuels Brownsville plant will process shale oil, which Holt adds is another huge positive.
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