In a presidential memorandum issued Thursday, Trump determined that petroleum production, refining, and related activities are essential to national defense under the 1950 Defense Production Act. The determination follows Trump’s declaration of a national energy emergency in January 2025.
The memo comes as the price of gas and diesel has soared across the country amid supply disruptions caused by the U.S. and Israel’s war against Iran. Brent crude futures rose 1.2% to $114.47 a barrel early Friday, extending gains after Thursday hit a five-month high. U.S. diesel pump prices averaged $6.32 a gallon, slightly higher than Thursday but below the September record, according to AAA. The high energy prices, and related inflation, have become a defining issue for voters in the coming midterm elections.
The memo means that energy production shortfalls are seen as a national defense risk.
The memorandum also removes certain Section 303 requirements through an emergency waiver, including ordinary congressional notification and authorization constraints.
Without taking action, the memo said, U.S. industry would be unable to provide sufficient energy services in a “timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.”
Has the Defense Production Act been invoked before?
Section 303 of the act was also used during the pandemic to fund domestic production of medicines and vaccines. Former President Joe Biden also invoked the statute to support clean energy manufacturing and supply chains, including minerals used in electric vehicle batteries and the production of of energy-efficient heat pumps and insulation.
Last year, Trump signed legislation providing $1 billion for Defense Production Act activities, including energy projects deemed critical to national security.
How else has Trump tried to lower energy prices?
The Trump Administration has pursued a number of other measures aimed at lowering energy prices since the Iran War began. Earlier this month, Trump signed an executive order temporarily expanding access to tax-exempt dyed diesel, which is typically reserved for off-road farm and construction vehicles. The Group of 7 countries, including the U.S., also agreed to release 100 million barrels of diesel and crude oil reserves to the world over four months.
Trump also announced an agreement with Putin earlier this month to import diesel from Russia, alongside temporary sanctions relief. The deal has faced significant backlash from lawmakers.
Meanwhile, oil exports from the Middle East topped prewar levels last week, marking a rebound in regional oil shipments despite continuing security risks. Ships sailing through the Strait of Hormuz, however, still face attacks from Iran, while the Bab el-Mandeb Strait near Yemen has been threatened by the Houthi rebels. Analysts previously told TIME in June that the risk of further attacks and damage to facilities could delay a full-scale recovery.
Analysts warned, after the April memorandum, that federal support would not necessarily translate into immediate price relief.
Still, Brooks said of the April action that federal recognition of energy as important to national security could support important infrastructure investment, potentially relieving a bottleneck in domestic fuel production, refining or transportation.
“Energy security seems to be the brightest neon sign flashing,” he wrote. “Not because it’s everything, but because nothing works without it.”
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