President Donald Trump on Thursday used the Defense Production Act to open the door to federal money for more U.S. oil drilling, refining, pipelines and fuel storage.
The White House posted the presidential determination, dated Oct. 22, as a memo to the Secretary of War. It finds that domestic petroleum capacity is “essential to the national defense.” The Washington Times reported the move Thursday evening.
What the order does
The determination is issued under Section 303 of the Defense Production Act of 1950. That section lets the government buy materials, sign purchase commitments and pay to build up production the military needs.
- What it covers: Oil exploration and production, gathering and transmission pipelines, storage and marine terminals, along with refining.
- Who acts: The Secretary of War is directed to carry it out, including purchases, commitments and financial instruments for the projects.
- Rules waived: Trump waived the law’s usual step-by-step requirements in Section 303(a)(1) through (a)(6), citing the need to avoid a shortfall that would “severely impair national defense capability.”
- Next step: The memo orders the determination published in the Federal Register.
Why the White House says it is needed
The memo ties the move to Executive Order 14156, the national energy emergency Trump declared on Jan. 20, 2025. It says petroleum fuels the armed forces, factories and key infrastructure.
It also says private industry cannot expand fast enough on its own because of “constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.”
What it does not say
The memo names no company, refinery, oil field or dollar amount. It gives no timeline for the first projects.
The South Arkansas connection
South Arkansas is oil country. Delek US runs a refinery in El Dorado, one of four it operates along with Tyler and Big Spring in Texas and Krotz Springs in Louisiana, according to the company’s annual report. Earlier this month, Vice President JD Vance said the administration was using the same law to expand Delek’s Tyler refinery.
Fuel costs hit farms and drivers across Southeast Arkansas, from Dumas to Monticello to Crossett. See iSEARK.com’s earlier reports on federal harvest fuel relief and Arkansas’s red-dyed diesel order.
