The President on Thursday determined that domestic petroleum production, refining, and logistics are essential to national defense and authorized support under the Defense Production Act to expand those capabilities, according to a presidential determination published Wednesday in the Federal Register.
The determination says petroleum fuels the Armed Forces, the industrial base, and crucial infrastructure, and that without immediate federal action, United States defense capabilities will remain “vulnerable to disruption.” It links the move to Executive Order 14156, which declared a national energy emergency on Jan. 20, 2025.
Citing section 303 of the Defense Production Act, the President found that exploration and production, pipelines, storage, and marine terminals are industrial resources or critical technology items essential to the national defense. The document says U.S. industry cannot reasonably be expected to provide needed capabilities in a timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.
The determination authorizes purchases, purchase commitments, and financial support for development of production capabilities as the most cost-effective and practical way to meet the need. It waives the requirements of section 303(a)(1) through (a)(6) under section 303(a)(7) to expand domestic petroleum production, refining, and logistics capacity.
Addressed as a memorandum to the Secretary of War, the document directs implementation, including necessary purchases, commitments, and financial instruments to enable projects, and orders publication of the determination. It states that any inconsistent provisions of previous memoranda, proclamations, and executive orders are superseded to the extent of the inconsistency.
The determination does not specify individual projects, dollar amounts, or timelines for the planned actions.