On Thursday, President Trump issued a memo declaring that petroleum production, refining, and related activities are vital for national defense, which may enable financial support for fossil fuel initiatives under the Cold War-era Defense Production Act.
This decision comes amid rising crude oil and diesel prices, driven by geopolitical tensions following U.S. and Israeli military actions against Iran and ongoing conflicts affecting energy shipments. The memo highlights challenges in energy service provision due to financing constraints, permitting delays, and supply chain issues.
Although it does not specify which projects might receive funding, it indicates a broader strategy to bolster U.S. energy capabilities. The U.S. is currently the world's largest crude oil producer, averaging 13.6 million barrels per day in 2025.
Additionally, Vice President JD Vance mentioned plans to utilize the Defense Production Act to enhance the capacity of a Texas refinery owned by Delek U.S. Holdings. This move is particularly significant as rising energy costs could pose electoral risks for Trump and the Republican Party, especially with only 36% of Americans approving of his economic management according to a recent poll