White House invokes DPA on petroleum

President Donald Trump issued a presidential determination on April 20 directing the Energy Department to use Defense Production Act authorities to support domestic petroleum production, refining and logistics capacity. The memorandum says petroleum infrastructure, including pipelines, storage and marine terminals, is essential to national defense and cannot be expanded quickly enough without federal action. The White House tied the move to Executive Order 14156, the “national energy emergency” Trump signed on January 20, 2025. The determination was published in the Federal Register on April 23 as Presidential Determination 2026-11. ### What exactly did the White House authorize? Section 303 of the Defense Production Act lets the federal government use tools such as purchases, purchase commitments and financial support to build industrial capacity, and Trump’s April 20 memorandum says those tools can be used for petroleum-related projects. The order names exploration and production, gathering and transmission pipelines, storage, marine terminals and refining as covered areas. (whitehouse.gov) The memorandum to Energy Secretary Chris Wright says U.S. industry “cannot reasonably be expected” to provide the needed capacity in time because of constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply chain limits. The White House said those conditions made federal action the “most cost-effective, expedient, and practical” option. (whitehouse.gov) ### Why did the order cite national defense instead of fuel prices? The April 20 determination frames petroleum as a defense-readiness issue, not as a retail fuel-price measure. The text says petroleum fuels the U.S. armed forces, the industrial base and critical infrastructure, and warns that without immediate federal action, defense capabilities would remain vulnerable to disruption. (whitehouse.gov) Executive Order 14156, signed on January 20, 2025, provided the legal and political backdrop. The petroleum memo says that order found inadequate U.S. energy production, transportation, refining and generation capacity posed an unusual and extraordinary threat to the economy, national security and foreign policy. (whitehouse.gov) ### What changed procedurally in this determination? Presidential Determination 2026-11 did more than declare petroleum capacity important. The document also says that, under Section 303(a)(7), Trump waived the requirements in Section 303(a)(1) through (a)(6) for the purpose of expanding that capacity. That waiver matters because the administration used the same structure across five energy determinations issued on April 20, according to White House and Federal Register records. (whitehouse.gov) Separate memoranda covered large-scale energy infrastructure, natural gas and LNG capacity, coal supply chains and baseload generation, and grid infrastructure and supply chains. ### Does this order itself pick projects or spend money? (govinfo.gov) The April 20 memorandum does not identify a refinery, pipeline, terminal or producer that will receive support. The text authorizes action and directs it to the Energy Department, but it does not attach project lists, dollar amounts or award dates. (whitehouse.gov) Industry lawyers at Akin Gump and Pillsbury said the determinations authorize DOE to use Title III incentives, including loans, loan guarantees, purchase commitments and cost-sharing arrangements, but noted the administration had not yet publicly named specific projects or funding levels. That characterization is consistent with the published text, which sets the legal basis without a project schedule. (whitehouse.gov) ### What should companies and contractors watch next? The next concrete step is Energy Department implementation. The memorandum is addressed to Wright, and any practical effect will depend on whether DOE opens solicitations, names eligible project categories, or announces financing terms for petroleum, refining or logistics assets. (akingump.com) As of May 17, 2026, the public documents available from the White House and Federal Register establish the authority, the covered sectors and the waiver, but not the recipient list. Companies tracking the order will need to watch DOE notices and future Federal Register postings for any awards, guidance or procurement actions tied to Presidential Determination 2026-11. (federalregister.gov) (whitehouse.gov)