Trump invokes Defense Production Act for oil production and refining

President Donald Trump designated petroleum production, refining and related activities as essential to national defense on Oct. 22, Reuters reported. In a presidential memo, he invoked part of the Cold War-era Defense Production Act, allowing financial incentives for oil-related activities, pipelines and liquid-fuel storage. Reuters says the move could open up U.S. funding for fossil fuel projects.

The memo argued that without those actions, the U.S. could not provide enough of those energy services in a timely manner. It cited constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations, according to Reuters.

Reuters reports that crude oil and diesel prices have surged since U.S.-Israeli attacks on Iran at the end of February, while the conflict has limited global energy shipments. Vice President JD Vance said the previous week that the administration would use the act to expand a Texas refinery owned by Delek US Holdings, Reuters reported. The Oct. 22 memo did not name specific projects that could be funded.