Trump invokes Cold War-era Defense Production Act for oil production, refining
USO•Donald Trump invoked part of the Defense Production Act, classifying petroleum production, refining and related activities as essential to national defense. The move could allow financial incentives for oil-related activities, pipelines and liquid-fuel storage, but the memo named no specific projects.
1. Defense Production Act invoked
Trump determined that petroleum production, refining and related activities are essential to national defense, and invoked part of the Cold War-era Defense Production Act. The move could allow the administration to provide financial incentives for oil-related activities, pipelines and liquid-fuel storage.
2. Memo cites constraints
The memo said financing constraints, long lead times, permitting and infrastructure bottlenecks, and supply-chain limitations could prevent the United States from providing enough energy services in a timely manner. It did not identify specific projects for funding.
3. Energy supply backdrop
Crude oil and diesel prices have surged since the United States and Israel attacked Iran in joint action at the end of February, while the conflict has limited global energy shipments and Ukrainian attacks on Russian refineries have added to fuel shortages. The United States averaged about 13.6 million barrels of crude production per day in 2025. Last week, JD Vance said the administration would use the act to expand capacity at a Texas refinery owned by Delek US Holdings.
