The key facts

  • Trump declared oil production, refining and logistics essential to national defense
  • Section 303 of the Defense Production Act was invoked
  • The measure may open federal funding for production, pipelines, storage and marine terminals

Memorandum in the interest of defense

US President Donald Trump on Thursday signed a memorandum declaring oil production and refining, as well as related activities, essential to national defense. According to Anadolu, this step may open access to federal funding for fossil fuel projects.

Section 303 of the Defense Production Act

In the memorandum, addressed to the Secretary of Defense, Trump invoked section 303 of the Cold War-era Defense Production Act. This allows the government to provide financial support for oil production, pipelines, storage and marine terminals. The definition covers exploration and production, gathering and trunk pipelines, storage and marine terminals.

Justification via the energy emergency regime

Trump cited his executive order 14156 of January 20, 2025 declaring a national energy emergency, issued under the National Emergencies Act. According to him, that order stated that insufficient US capacity to produce, transport, refine and generate energy constitutes an unusual and extraordinary threat to the country's economy, national security and foreign policy, and that unstable energy supplies make it vulnerable to hostile foreign actors.

Quotes from the memorandum

“Ensuring sustainable domestic oil production, refining and logistics capacity is central to the defense readiness of the United States,” the memorandum says. Trump also noted: “Oil fuels the nation's armed forces, industrial base and critical infrastructure. Without immediate federal action, US defense capabilities will remain vulnerable to disruption.”