Trump Assigns Secretary of War to Lead U.S. Petroleum Expansion

President Donald Trump assigned the Secretary of War to carry out federal support for U.S. petroleum capacity, replacing the Energy secretary named in an April 20 determination on the same effort.

Trump’s Oct. 22 determination, issued under Section 303 of the Defense Production Act of 1950 (DPA), treats domestic petroleum exploration and production, gathering and transmission pipelines, storage and marine terminals as essential to national defense. Its scope includes both production and the infrastructure used to move and store petroleum.

Section 303 allows the federal government to buy industrial resources, commit to purchases and develop production capabilities deemed essential to national defense. The determination applies that authority to U.S. petroleum capacity and its supporting logistics network.

The Secretary of War is directed to carry out the determination through purchases, purchase commitments and financial instruments. It also invokes Section 303(a)(7) to waive requirements in subsections (a)(1) through (a)(6). The document cites constrained financing, long project timelines, permitting, infrastructure bottlenecks and supply-chain limits as barriers to timely industry action.

“Petroleum fuels the Nation’s Armed Forces, industrial base, and crucial infrastructure,” Trump wrote in the determination.

The April 20 determination on the same petroleum capacity effort was addressed to the Secretary of Energy and assigned that official responsibility for implementation. The Oct. 22 determination gives the role to the Secretary of War. It says provisions in earlier actions are superseded where they conflict, but offers no reason for the change in assignment.

Separately, the Department of Energy (DOE) announced Oct. 22 that it plans to make up to $150 million in Defense Production Act Title III funding available for petroleum production, storage and logistics at U.S. refineries. Recipient selection is underway. DOE projected the funding could increase refining output by millions of gallons per day, without giving a more precise estimate.

The DOE funding plan is separate from the presidential determination and focuses on refinery projects. The department has not named recipient refineries or provided a timetable.