OMM Newsroom
US President Donald Trump on Thursday declared petroleum production, refining and related activities essential to national defense, a move that could make federal funding available for fossil fuel projects, according to Anadolu Agency.
In a presidential memorandum to the secretary of defense, Trump invoked Section 303 of the Cold War-era Defense Production Act. The provision allows the government to provide financial support for oil production, pipelines, storage and marine terminals.
Trump cited Executive Order 14156, issued on January 20, 2025, which declared a national energy emergency under the National Emergencies Act. He said the order had identified inadequate US energy production, transportation, refining and generation capacity as an unusual and extraordinary threat to the country’s economy, national security and foreign policy.
The order also said that the country’s current inadequate and intermittent energy supply left the United States vulnerable to hostile foreign actors and posed an imminent and growing threat to its prosperity and national security.
“Consistent with that declaration, I find that ensuring resilient domestic petroleum production, refining, and logistics capacity is central to United States defense readiness,” Trump said in the memorandum.
He added that petroleum fuels the country’s armed forces, industrial base and crucial infrastructure, and warned that without immediate federal action, US defense capabilities would remain vulnerable to disruption.
The determination covers exploration and production, gathering and transmission pipelines, storage and marine terminals.
