Trump Invokes Defense Production Act for U.S. Petroleum Production, Refining and Logistics

President Trump signed a presidential determination on Thursday declaring that domestic petroleum production, refining and logistics capacity are industrial resources essential to national defense, formally invoking Section 303 of the Defense Production Act of 1950, as amended (50 U.S.C. 4533). The move, confirmed by a White House memorandum and reported by CNBC, could open federal purchasing power and financing tools for fossil fuel projects, though the text released so far names no specific projects.

What the determination actually authorizes

The memorandum finds that domestic petroleum production, refining and logistics capacity, including exploration and production, gathering and transmission pipelines, storage, and marine terminals, qualify as critical industrial resources under Section 303(a)(5) of the Act. It states that without presidential action, U.S. industry cannot be expected to deliver that capacity in a timely way because of "constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations," and concludes that purchases, purchase commitments and financial support for production capabilities are the most cost-effective and practical way to meet the need, according to the White House text.

The memo is addressed to the Secretary of War, who is authorized and directed to implement the determination, including making the necessary purchases, commitments and financial instruments, and to publish the determination in the Federal Register. The released text does not identify a separate administering agency, nor does it lay out an application process, solicitation window or timeline for refiners or midstream operators seeking support; what it establishes is the underlying national-defense finding that triggers the authority to act.

No dollar ceiling disclosed in the order itself

The presidential determination sets no specific funding ceiling or appropriation figure for the purchases, commitments or loan and guarantee instruments it authorizes. CNBC's reporting notes that Congress, through legislation Trump signed last year, included $1 billion in Defense Production Act funding for energy-related projects deemed critical to national security, but that appropriation is tied to the earlier legislative action rather than explicitly cited in Thursday's memo as the ceiling for this determination. Readers should treat the $1 billion figure as background context on existing DPA energy funding rather than a confirmed cap on what this specific action can spend.

Scope: upstream, midstream and refining, but no stated capacity targets

By its own text, the determination spans the full petroleum value chain: exploration and production, gathering and transmission pipelines, storage and marine terminals, alongside refining. It does not distinguish between new-build refining capacity and debottlenecking of existing plants, and CNBC reported that the memo did not mention specific projects that could be funded. The one concrete example surfaced in reporting predates Thursday's memo: CNBC reported that Vice President JD Vance said last week the administration would use the Defense Production Act to expand capacity at a Texas refinery owned by Delek U.S. Holdings — an expansion of an existing facility rather than greenfield construction. Neither the White House memorandum nor the available reporting identifies refiners or midstream operators that have responded to Thursday's determination or signaled an intent to seek support under it.

The policy backdrop

The White House memo ties Thursday's action to Executive Order 14156, which Trump issued on January 20, 2025, declaring a national energy emergency. 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. The backdrop is a sharp run-up in fuel costs: CNBC reported that crude oil and diesel prices have surged since the U.S. and Israel attacked Iran at the end of February, with the conflict limiting global energy shipments and Ukrainian strikes on Russian refineries worsening fuel shortages. CNBC also reported that the cost surge poses a political risk ahead of the Nov. 3 elections, citing a Reuters/Ipsos poll that closed Monday showing 36% of Americans approve of Trump's handling of the economy — and noted that the U.S. averaged around 13.6 million barrels of daily crude production in 2025, the largest of any country, which frames the action as aimed at refining and logistics bottlenecks rather than a shortage of crude. Bottom line: the determination creates the legal predicate for federal purchases and financing across the petroleum chain, but until the Secretary of War publishes it in the Federal Register and any solicitation or award terms emerge, the released text names no projects, no administering process and no dollar ceiling.