The essentials
The US is using the Defense Production Act to expand domestic oil production, refining, and logistics capacity.
President Trump has invoked the Defense Production Act to expand US petroleum production, refining, and logistics capacity. A presidential memorandum directs Defense Secretary Hegseth to fund the expansion of domestic oil infrastructure, and Trump has waived standard statutory requirements under the act for petroleum capacity expansion.
The measure was announced at a campaign rally in Sioux City, Iowa, where Trump said it would boost refining capacity. Separately, Vance announced a plan to use the act to expand fuel output at a refinery in Tyler, Texas.
The petroleum action follows earlier steps. In April, Trump invoked the Defense Production Act for coal, liquefied natural gas, and natural gas transmission. Executive Order 14156, which declared a national energy emergency in January 2025, preceded these measures.
The announcements do not specify how much additional capacity the expansion would add or when it would come online.
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Emergency powers have been invoked repeatedly since January 2025 declaration
The current measures extend a sequence of emergency-based actions. A national energy emergency was declared in January 2025, and the Defense Production Act was later invoked for coal, LNG, and natural gas transmission. The petroleum directive adds refining and logistics to that list, shifting the emphasis toward oil infrastructure as the global fuel shortage continues.
Domestic refining expansion aims to add capacity amid global shortage
Framed as a domestic supply measure, the expansion seeks to add refining and logistics capacity within the United States rather than relying on imported fuel. Announced projects so far include the Tyler, Texas refinery. The announcements do not yet detail how the waived statutory requirements will affect project timelines.