The Trump administration is pushing to reopen closed oil refineries across the United States, including a dormant facility in the U.S. Virgin Islands, as gasoline prices remain elevated above $4.10 per gallon amid the ongoing Iran war.
A White House official confirmed Thursday that the administration “would like to see refineries across the country reopen, especially the St. Croix refinery.” The official cited the facility’s strategic location and its design to process Venezuelan crude as key factors in its appeal.
Gas prices have climbed more than $1 per gallon since the Iran conflict began earlier this year, according to AAA data. The national average stood at $4.10 Thursday.
“Energy security is national security, and America’s refining capacity is essential to ensuring the United States has continuous access to secure, affordable, and reliable energy,” White House spokesperson Taylor Rogers said in a statement reported by Politico. “The President’s National Energy Dominance Council will continue supporting the reopening of shuttered refineries and the construction of new ones to lower prices and strengthen our national security.”
The St. Croix refinery shut down indefinitely in 2021, following an Environmental Protection Agency order to halt operations over oil releases and air pollution concerns the agency described as an “imminent risk to public health.”
Since April 2025, the official said, multiple private companies have approached the administration about purchasing the facility. Interest has intensified following the U.S. capture of Venezuelan leader Nicolas Maduro and the American takeover of Venezuela’s oil infrastructure.
Three industry executives told Politico, which first reported the refinery push, that White House discussions have covered potential reopening sites stretching from the Virgin Islands to California. The administration is also engaging private investors about reviving other closed facilities nationwide.
The National Energy Dominance Council, established by President Trump to coordinate domestic energy policy, is overseeing the outreach effort.
The United States has not built a new major oil refinery since the 1970s. Domestic refining capacity has contracted over recent decades as older plants closed and new construction stalled amid regulatory costs and environmental opposition. Analysts say tighter refinery supply amplifies price spikes when crude markets tighten, as they have under wartime conditions.
