US President Donald Trump has directed the secretary of defense to expand domestic oil production, refining, transportation and storage capacity, Bloomberg’s Asharq Business website reported on October 23.
Trump cited national security and military readiness needs for his directions amid severe disruptions to global energy markets caused by the war in the Middle East.
Under a presidential memorandum invoking Section 303 of the Defense Production Act of 1950, Trump designated oil production, refining and related logistics, including exploration, production, pipelines, storage facilities and marine terminals, as essential to national defense.
Trump said the US industry could not develop the required capacity quickly enough without presidential intervention because of financing constraints, lengthy project timelines, permitting obstacles, infrastructure limitations and supply chain bottlenecks.
The US Defense Production Act allows the president to support domestic industrial capacity deemed essential to national defense. Section 303 provides authority for measures to expand productive capacity and supply of materials considered critical to defense needs.