Trump Invokes Defense Production Act for Oil Production and Refining Capacity, Directs Pentagon Chief Hegseth

President Trump invoked the Cold War-era Defense Production Act on October 22, directing federal authority toward domestic petroleum production, refining, and logistics capacity. The action was accompanied by a memo sent directly to Defense Secretary Pete Hegseth, underscoring the administration's framing of fuel supply as a national security imperative rather than solely an energy policy matter.

The move comes as the United States grapples with elevated fuel prices tied to the ongoing conflict with Iran, which has exposed the country's vulnerability to crude supply disruptions. U.S. refining capacity has declined from a 2020 peak of 19 million barrels per day, and national average diesel prices have remained above $6 per gallon. The administration had already used the Defense Production Act earlier in October to expand Delek US Holdings' 74,000-barrel-per-day Texas refinery, an action announced by Vice President JD Vance.

The October 22 invocation broadens that effort under Section 303 of the 1950 law, which gives the president authority to require private companies to prioritize and accept government contracts for materials deemed essential to national defense. Directing the memo to Hegseth signals the Pentagon's involvement in the administration's push to shore up domestic fuel supply chains.