President Donald Trump is set to host executives from major U.S. oil and refining companies at the White House, setting the stage for a high-stakes showdown.
The meeting comes after blistering accusations from the administration that refiners are profiteering off Americans while pump prices stubbornly hold above $4 a gallon.
The friction stems from a glaring disconnect between plummeting crude oil costs and the price drivers continue to see at local stations.
Following economic shocks and supply disruptions tied to the conflict with Iran, gasoline prices soared earlier in the year.
Even though crude prices have dropped sharply from their peaks, three of the largest U.S. refiners recently posted a combined $12.6 billion in second-quarter profits.
This prompted President Trump to call out the industry, demand a Department of Justice investigation into alleged price gouging, and challenge companies to use their massive earnings to lower fuel costs.
As reported, the hastily organized gathering has created an uneasy calculation for industry leaders.
While some see it as a rare opportunity to lobby the administration directly on pressing issues such as biofuel policies and the Jones Act others fear a repeat of past volatile White House showdowns.
Executives from independent fuel makers and integrated giants like Marathon Petroleum, Valero Energy, PBF Energy, Delek US Holdings, and Chevron are expected to fill the room.
the nation’s third-largest refiner was reportedly left off the invite list following lingering tension after CEO Darren Woods sparred with Trump over foreign investments.
The White House maintains that the primary objective of the meeting is to push for concrete, near-term steps to expand domestic refining capacity.
Administration officials point out that the U.S. refining system is currently operating at nearly 100% of existing capacity, leaving little room for error as the White House looks to leverage increased crude flows including supplies from Venezuela to drive down costs for consumers.
The White House says the meeting will focus on expanding U.S. refining capacity, arguing years of Democratic policies led to refinery closures and discouraged investment in new facilities and expansions.
The U.S. is operating at nearly 100% of its existing refining capacity, a White House official said, leaving the administration focused on “concrete, near-term steps” to increase capacity and ultimately lower gasoline prices for consumers.
