WASHINGTON — President Donald Trump invoked the Defense Production Act on Thursday to expand the country’s petroleum production, refining and logistics capacity, determining that the capacity is essential to the national defense.
In a memorandum to the Secretary of War, Trump said domestic petroleum capacity — exploration and production, gathering and transmission pipelines, storage and marine terminals — fuels the armed forces, the industrial base and crucial infrastructure.
One line in the memorandum stated the risk directly:
“Without immediate Federal action, United States defense capabilities will remain vulnerable to disruption.”
Without Section 303, Trump found, industry on its own could not be counted on to deliver that capacity in time. Financing is tight, lead times are long, and permitting, infrastructure and supply chains all stand in the way, the memorandum said.
He waived several of the act’s requirements for the expansion, saying a shortfall in the capacity would severely impair national defense capability. Purchases, purchase commitments and financial support for developing production capacity were, he determined, the most cost-effective and practical way to meet the need.
The Secretary of War was directed to put the determination into effect, including making the purchases, commitments and financial instruments needed to enable the projects.
Trump declared a national energy emergency in Executive Order 14156, signed Jan. 20, 2025, and the memorandum builds on that declaration. That order found the country’s energy production, transportation, refining and generation capacity inadequate, and called it a threat to the economy, national security and foreign policy.
Reuters reported that prices for crude oil and diesel have surged since the United States and Israel attacked Iran at the end of February, with the conflict limiting energy shipments globally and Ukrainian attacks on Russian refineries adding to fuel shortages.
The memorandum named no specific projects that could be funded. At about 13.6 million barrels a day in 2025, the United States already produces more crude than any other country, Reuters reported.
Vice President JD Vance said last week the administration would use the act to expand capacity at a Texas refinery owned by Delek US Holdings, Reuters reported. Legislation Trump signed last year included $1 billion in Defense Production Act funding for energy projects deemed critical to national security, according to Reuters.
Have something to promote?
Bring your business, services or event to our readers.
