US President Donald Trump speaks to members of the media as he departs the White House en route to South Carolina, October 21, 2026, in Washington, DC, USA.
Kevin Lamarque | Reuters
President Donald Trump on Thursday determined that oil production, refining and related activities are essential to national defense, a move that could open up funding for U.S. fossil fuel projects.
In his presidential memo, Trump also invoked parts of the Cold War-era Defense Production Act that allow for financial incentives for oil-related activities, pipelines and liquid fuel storage.
Crude oil and diesel prices have soared since the United States and Israel jointly attacked Iran at the end of February. Since then, the conflict has restricted energy shipments globally, with fuel shortages exacerbated by Ukraine’s attack on a Russian refinery.
Rising costs pose a risk to Mr. Trump in the Nov. 3 election as his fellow Republicans seek to maintain control of both chambers of Congress. A Reuters/Ipsos poll that ended Monday found that only 36% of Americans approve of President Trump’s handling of the economy.
Without action, the memo said, the United States will not be able to fully provide these energy services in a timely manner “due to financing constraints, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.”
The memo does not mention specific projects that may be funded. The United States will produce an average of approximately 13.6 million barrels of crude oil per day in 2025, making it the world’s largest crude oil producer.
Last week, Vice President J.D. Vance said the administration would use the Defense Production Act to expand capacity at refineries it owns in Texas. Derek US Holdings.
President Trump signed a bill last year that included $1 billion in Defense Production Act funding for energy-related projects deemed critical to national security.
