Trump Finds Domestic Petroleum Capacity Essential to National Defense: Invokes Defense Production Act Section 303 to Expand It
WASHINGTON — The White House on October 22 released a presidential memorandum in which President Donald J. Trump determined, under section 303 of the Defense Production Act of 1950, as amended, that domestic petroleum production, refining, and logistics capacity is essential to the national defense, and that the purchases, purchase commitments, and financial support authorized by that section may be used to expand it. The memorandum is addressed to the Secretary of War and was published in full on the White House website the same day.
The memorandum cites Executive Order 14156, issued on January 20, 2025, which declared a national energy emergency and found that America's inadequate energy production, transportation, refining, and generation capacity constitute an unusual and extraordinary threat to the nation's economy, national security, and foreign policy, leaving the country vulnerable to hostile foreign actors.
According to the memorandum, resilient domestic petroleum production, refining, and logistics capacity is central to United States defense readiness; petroleum fuels the nation's Armed Forces, industrial base, and crucial infrastructure; and without immediate federal action, United States defense capabilities will remain vulnerable to disruption.
The determination has three parts. First, domestic petroleum production, refining, and logistics capacity, including exploration and production, gathering and transmission pipelines, storage, and marine terminals, are industrial resources, materials, or critical technology items essential to the national defense. Second, without presidential action under section 303, United States industry cannot reasonably be expected to provide those capabilities in a timely manner, due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations. Third, purchases, purchase commitments, financial support for the development of production capabilities, or other action under section 303 are the most cost-effective, expedient, and practical alternative methods for meeting the need.
The memorandum further states that, having declared a national emergency under Executive Order 14156, the President determined that action to expand domestic petroleum production, refining, and logistics capacity is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability, and therefore waived the requirements of section 303(a)(1) through (a)(6) of the Act under section 303(a)(7) for the purpose of expanding that capacity.
The Secretary of War is authorized and directed to implement the determination, including making the necessary purchases, commitments, and financial instruments to enable the projects, and to publish the determination in the Federal Register. Any provision of previous memoranda, proclamations, and Executive Orders inconsistent with the determination is superseded to the extent of the inconsistency.
Published by GSM · USA (original Chinese edition)
Photo: 图：位于 El Segundo 的一座炼油厂（资料图）。照片：Pedro Szekely，CC0，经 Wikimedia Commons。 / A refinery in El Segundo, California (file photo). Photo: Pedro Szekely, CC0, via Wikimedia Commons.
