Trump declares oil essential to U.S. national defense

U.S. President Donald Trump declared oil production, refining and related activities essential to national defense on Thursday. The decision could pave the way for federal financial support for oil production, pipelines, storage facilities and marine terminals.

Scraper SystemOctober 23, 2026, 06:55 PM

Trump declares oil essential to U.S. national defense

U.S. President Donald Trump declared the oil sector's activities, from production to refining and related operations, essential to national defense. The move, taken through a presidential memorandum, could enable federal financing for fossil fuel projects.

Trump activated Section 303 of the Defense Production Act, which dates back to the Cold War. The provision gives the government the ability to provide financial support for oil production, pipelines, storage facilities and marine terminals.

Energy supply and defense preparedness

In explaining his rationale, Trump cited Executive Order 14156, which he issued on January 20, 2025, under the National Emergencies Act. The order determined that insufficient capacity in U.S. energy production, transportation, refining and electricity generation posed an extraordinary and serious threat to the country’s economy, national security and foreign policy.

Houston'da bir petrol rafinerisi (arşiv)

Trump said that inadequate and unreliable energy supplies left the United States vulnerable to hostile foreign actors, adding that this posed a growing threat to the country’s prosperity and national security.

In a memorandum sent to the Defense Secretary, Trump said resilient domestic oil production, refining and logistics capacity were central to U.S. defense preparedness. Trump said oil was essential to the armed forces, industrial infrastructure and critical facilities, adding that without federal intervention, defense capabilities would remain vulnerable to disruptions.

The decision covers oil exploration and production, as well as gathering and transmission pipelines, storage facilities and marine terminals.