American Petroleum First Act

**What happened and status:** The American Petroleum First Act (HR8021) was introduced on March 19, 2026 by Rep. Scott Perry (R-PA-10) with 4 cosponsors. It was referred to the House Committee on Transportation and Infrastructure, which has jurisdiction over the Jones Act (46 U.S.C. Chapter 121). The bill remains in early stage — it needs committee markup, House floor vote, Senate companion, and Presidential signature. The sponsor is a junior House member (no committee chairmanship), giving this roughly 20-25% chance of passage in the 119th Congress, though the policy concept aligns with the current administration's April 20 DPA energy infrastructure agenda. **The money trail:** The bill does NOT authorize or appropriate any federal funds. It is a pure regulatory relief mechanism: it amends 46 U.S.C. §12103 and §12112 to exempt vessels transporting crude oil and petroleum products from coastwise endorsement (Jones Act) requirements, provided the vessel is not owned/crewed by Russia or China. The economic impact comes from eliminating a regulatory constraint that artificially inflates domestic shipping costs — the Jones Act requires vessels moving between US ports to be US-built, US-flagged, and US-crewed, limiting supply of available ships and raising rates. Removing this requirement for petroleum products immediately expands the eligible vessel pool, reducing per-barrel transport costs by an estimated $0.50–$1.50 based on industry studies of Jones Act premiums on refined products and crude. **Structural winners and losers:** Winners are directly identified: upstream producers (XOM, CVX, EOG) benefit from cheaper crude transport from basins to refining centers; independent refiners (MPC, PSX, VLO) benefit on both inbound crude and outbound product logistics; midstream operators (KMI, ET) benefit from increased throughput at marine terminals and connected pipeline systems. The losers are US shipbuilders and Jones Act vessel operators — but there are no significant publicly traded pure-play Jones Act shipping companies, so the downside exposure in public markets is minimal. Foreign flag vessel operators (European, Asian) are indirect beneficiaries but not tradeable via US-listed stocks. **Real market data context:** Current prices show a clear energy sector rebound that aligns with both the DPA executive actions (April 20) and momentum behind HR8021. XOM at $150.56 is up 0.71% in 7 days but still down 11.95% over 30 days, suggesting the recent gains are a reversal of prior weakness rather than a new breakout. MPC at $232.59 (+4.74% 7-day) and VLO at $240.27 (+2.52% 7-day) are outperforming, consistent with the refiners being the most direct beneficiaries of shipping cost relief. Midstream names are mixed — KMI at $31.79 (-0.06% 7-day) lags while ET at $19.41 (+1.78% 7-day) shows modest momentum. The 30-day declines across the sector (-5% to -12%) reflect prior crude price weakness, but the positive 7-day momentum in producers and refiners suggests market is pricing in the combined effect of DPA support + legislative cost relief. **Timeline:** Immediate next steps: House Transportation & Infrastructure Committee will hold hearings (likely Q3 2026). A companion bill in the Senate would need to be introduced. The administration's April 20 DPA determination on domestic petroleum production and logistics signals executive branch support for broadly similar goals, which could accelerate committee interest. Best-case timeline for passage: late 2026 (lame duck) or early 2027 (120th Congress). The bill must be reintroduced in the next congress if it doesn't pass by January 2027.