President Trump just made American oil a matter of national defense. On Thursday, he signed a memo that puts the Defense Production Act oil push into motion, declaring domestic petroleum production, refining, pipelines, storage, and marine terminals “essential to the national defense.”
That is a big deal. The Cold War-era law lets Washington spend money and make deals to grow industries it considers vital. Now oil and gas are on that list. Here is what the order does, and why conservatives should cheer the goal while keeping an eye on the checkbook.
What the Defense Production Act Oil Memo Actually Says
The memo is short. It is addressed to the Secretary of War and builds on the national energy emergency Trump declared on Jan. 20, 2025, according to the text released by the White House. In it, Trump finds that “petroleum fuels the Nation’s Armed Forces, industrial base, and crucial infrastructure.”
He also finds that private industry cannot build enough capacity “in a timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limitations.” For that reason, the memo authorizes “purchases, purchase commitments, financial support” and other tools to expand capacity. In addition, it waives several of the law’s usual requirements for this purpose.
However, the memo did not name any specific projects that could get funding, CNBC reported. So the details of who gets what are still unknown.
Why Now
Fuel prices are the reason. Crude oil and diesel prices have surged since the U.S. and Israel struck Iran at the end of February, CNBC reported. The conflict has limited energy shipments around the world, and Ukrainian attacks on Russian refineries have made fuel shortages worse. Meanwhile, Houthi strikes keep hitting Saudi targets, as we covered when Aramco evacuated its headquarters.
Politics matter here too. A Reuters/Ipsos poll that closed Monday showed just 36% of Americans approve of Trump’s handling of the economy, according to CNBC. The midterms are Nov. 3.
The Defense Production Act Oil Plan Has Already Started in Texas
Thursday’s memo is not the first move. On Oct. 13, Vice President JD Vance said the administration would use the Defense Production Act to expand a Delek US Holdings refinery in Tyler, Texas, Reuters reported. That plant processes about 74,000 barrels a day.
“We want millions of gallons of commercial grade and military-spec fuel to come out of this refinery in addition to what it’s already producing,” Vance said. He added that it would mean “lower costs to drive your car into work every single day.”
Still, Reuters noted that the White House and Delek did not say how much money was involved or how much capacity would be added. Reuters also noted that refinery expansions usually take many months, if not years.
The Conservative Take
First, the goal is right. America produced about 13.6 million barrels of crude a day in 2025, the most of any country, CNBC reported. Yet a nation that leads the world in oil should not be at the mercy of Tehran, the Houthis, or Moscow every time a tanker gets hit. Energy is security. Treating it that way is overdue.
Second, the memo itself names the real problem. It blames “permitting and infrastructure bottlenecks” for slow building. That is exactly why Congress should pass lasting fixes, like the Senate permitting reform bill we wrote about today. An emergency memo can be undone by the next president. A law is much harder to reverse.
Third, watch the money. Trump signed a law last year that included $1 billion in Defense Production Act funding for energy projects tied to national security, according to CNBC. Fiscal conservatives should want every dollar of that tracked. Government picking winners is how we got Solyndra. Therefore, the best use of this power is clearing roadblocks, not writing blank checks.
In the end, cheaper gas comes from more supply, and more supply comes from letting Americans build. If this order does that without turning into another subsidy machine, it is a win. For more, follow our Trump Administration coverage.
