Trump invokes Defense Production Act to support US oil industry — Anadolu Agency

US President Donald Trump on October 23 designated oil production, refining and related activities as essential to national defense. The decision could make federal financial support available for fossil fuel projects, Anadolu Agency reports.

Defense Production Act

In a presidential memorandum, Trump cited Section 303 of the Defense Production Act, adopted during the Cold War. This provision allows the government to provide financial support for oil production, pipelines, storage facilities and marine terminals.

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

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White House rationale

In the memorandum to the secretary of defense, the president stated that resilient domestic capacities for oil production, refining and logistics are key to US defense readiness. According to him, petroleum products supply fuel to the country's armed forces, industrial base and critical infrastructure.

Trump also referred to Executive Order No. 14156 of January 20, 2025, declaring an energy emergency. The document stated that insufficient US capabilities in energy production, transportation, refining and generation pose a threat to the country's economy, national security and foreign policy.