Trump invokes Defense Production Act to boost US oil production

US President Donald Trump on Thursday declared petroleum production, refining and related activities essential to national defense, a move that could unlock federal funding for fossil fuel projects.

In a presidential memorandum, Trump invoked Section 303 of the Cold War-era Defense Production Act, allowing the government to provide financial support for oil production, pipelines, storage and marine terminals.

"On January 20, 2025, I issued Executive Order 14156 (Declaring a National Energy Emergency), under the National Emergencies Act. That order found that America's inadequate energy production, transportation, refining, and generation capacity constitute an unusual and extraordinary threat to the Nation's economy, national security, and foreign policy. It emphasized that our Nation's current inadequate and intermittent energy supply leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the prosperity and national security of the United States.

"Consistent with that declaration, I find that ensuring resilient domestic petroleum production, refining, and logistics capacity is central to United States defense readiness," he said in a memorandum to the secretary of defense.

"Petroleum fuels the Nation's Armed Forces, industrial base, and crucial infrastructure. Without immediate Federal action, United States defense capabilities will remain vulnerable to disruption," he added.

The determination covers exploration and production, gathering and transmission pipelines, storage and marine terminals.