Trump turns to Cold War-era act to boost U.S. oil output, refining
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President Donald Trump has invoked the Cold War-era Defense Production Act (DPA) to provide up to $150M to expand petroleum production, storage and logistics at refineries across the U.S.
The Department of Energy said the move will help boost domestic production of gasoline, diesel, jet fuel and other petroleum products, which will in turn lower prices.
This funding is expected to increase U.S. refining output by millions of gallons per day, the department said.
The announcement did not specify which projects would be funded, but Vice President JD Vance last week said the DPA would be used to expand capacity at Delek US' (DK) refinery in Texas.
A presidential memo stated that the U.S. can't carry out petroleum production and refining "in a timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations."
Funding and purchases under the DPA are "the most cost-effective, expedient, and practical alternative methods for meeting this need," the memo added.
Trump last year signed legislation that appropriated $1B in DPA funding for energy-related projects deemed critical to national security.
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