President Donald Trump has invoked the Defense Production Act to support US oil production and refining, declaring the industry essential to national defence as the war with Iran keeps fuel prices high ahead of next month's midterm elections.
The memorandum, issued on Thursday, 22 October, uses Section 303 of the Cold War-era law, which allows the government to make purchases and purchase commitments, provide financial support and equipment, and take other steps to expand production. It covers petroleum production, refining, pipelines and the storage of liquid fuels, and uses an emergency waiver to set aside some of the usual requirements, including congressional notification.
Few details on funding
The memorandum does not name projects or commit specific sums. Last year Mr Trump signed legislation providing $1bn for Defense Production Act activities, including energy projects. Vice-President JD Vance has said the administration would use the act to expand a Texas refinery owned by Delek US Holdings. Earlier determinations in April covered natural gas, coal and the electricity grid.
Limited relief expected
Crude and diesel prices have risen sharply since the US and Israel attacked Iran in late February, and Ukrainian attacks on Russian refineries have tightened fuel supplies further. US diesel averaged $6.32 a gallon on 23 October, according to AAA, below September's record.
Analysts expect limited or short-lived relief from the administration's other measures, which include a Jones Act waiver, a release of reserves co-ordinated with G7 partners and a diesel supply arrangement with Russia. The US produced an average of about 13.6 million barrels of crude a day in 2025, more than any other country.
