Tyler, Texas – In a clear statement during its third‑quarter 2026 earnings call, Delek U.S. Holdings announced that its Tyler refinery will remain at a production level of 75,000 barrels of crude per day. The decision comes after Vice President JD Vance’s October rally in Tyler, where he said the administration had reached an agreement with Delek to expand the plant’s capacity under the Defense Production Act.
Company’s stance
Delek CEO Avigal Soreq emphasized, “To make it very, very clear, Tyler is going to stay at 75,000 barrels a day of crude.” He added that no material capital expenditures are planned for the facility and that any changes would involve only shifting product mixes, not expanding overall output.
Administration’s involvement
At the rally on Oct. 13, Vice President Vance said the federal government wanted “millions of gallons of commercial‑grade and military‑spec fuel to come out of this refinery in addition to what it’s already producing.” He framed the move as part of a broader effort to secure domestic fuel supplies for both civilian and defense needs.
During the earnings call, Soreq clarified that Defense Production Act funds will not be used to finance any expansion at the Tyler plant. “There is no material CapEx that we need to disclose,” he said. “We are obviously very thankful for the administration for helping oil refineries in the U.S., especially small refineries where jobs are extremely important and affordability is critical, but from a materiality standpoint it doesn’t meet our threshold at all.”
Local impact
The refinery is a significant employer in East Texas, providing steady jobs to the Tyler community. While the plant will not increase its overall capacity, Delek’s reassurance that it will continue operating at current levels helps maintain employment stability and supports local fuel affordability.
Community leaders have praised the administration’s attention to small‑refinery concerns, noting that keeping the plant running at full existing capacity is vital for regional economic health. The decision also aligns with broader efforts to ensure energy security without imposing large new capital projects that could disrupt the local labor market.
What’s next?
Delek indicated that any future adjustments would focus on product mix rather than volume. The company will continue to monitor market conditions and federal guidance, but for now, the Tyler refinery’s output will stay steady at 75,000 barrels per day.
Stakeholders and residents can expect the refinery to maintain its current role in supplying both commercial and military‑grade fuels, a balance that supports local jobs and keeps fuel prices stable for Texas consumers.
Original reporting: KLTV 7 Tyler (news) — read the source article.
