Donald Trump Invokes Defense Production Act to Boost Oil

President Donald Trump invoked the Cold War-era Defense Production Act on Thursday, designating petroleum production, refining, and related activities as essential to national defense. The move allows the administration to provide financial incentives for oil-related activities, pipelines, and liquid fuel storage to address energy shortages and rising crude oil and diesel prices.

Global energy shipments have been limited following joint U.S. and Israeli attacks on Iran in February and Ukrainian strikes on Russian refineries. The action comes as polling indicates only 36% of Americans approve of the president's economic management ahead of the November 3 elections.

While the presidential memo did not list specific projects, Vice President JD Vance recently stated the administration would use the Act to expand a Texas refinery owned by Delek US Holdings. Trump previously signed legislation allocating $1 billion in Defense Production Act funding for critical energy projects.