Trump taps Defense Production Act to boost US oil and refining
Why it matters: The move could steer federal funding to pipelines, storage and refinery projects as fuel prices rise before Nov. 3 elections.
President Donald Trump moved to use the Cold War-era Defense Production Act to support US petroleum production, refining and related infrastructure, declaring the sector essential to national defense. A presidential memo allows financial incentives for oil projects, including pipelines and liquid-fuel storage, though it did not name specific projects. The step follows a run-up in crude and diesel prices after US and Israeli strikes on Iran at the end of February disrupted global energy shipments, while Ukrainian attacks on Russian refineries added pressure. Last week, Vice President J.D. Vance pointed to a possible DPA-backed expansion at a Delek US Holdings refinery in Texas. Trump signed a 2025 law that set aside $1 billion in DPA funding for energy projects tied to national security.