US President Donald Trump has directed the expansion of domestic oil production, refining, transportation, and storage capacities through financial support, contract awards, and procurement operations, emphasizing that this is essential for national security and defense readiness amid disruptions in global energy markets caused by the war in the Middle East.
Bloomberg reported on Friday that Trump justified the decision by citing the difficulty of expanding these capacities at the required speed due to funding constraints, long project implementation periods, and obstacles related to permits, infrastructure, and supply chains, relying on the national energy emergency he declared on January 20, 2025, to accelerate project implementation.
A presidential memorandum relied on Section 303 of the Defense Production Act of 1950, classifying oil production and refining capacities and related logistics, including pipelines, storage facilities, and marine terminals, as critical industrial resources for national defense.
This move comes amid US administration efforts to lower fuel prices ahead of the midterm elections scheduled for November 3, following supply disruptions that pushed the average diesel price in the United States to approximately $6.32 per gallon, according to the American Automobile Association.
According to Bloomberg, the US Department of Energy announced a plan to lend 315,000 barrels from the emergency reserve of heating oil in the northeastern United States, which has a capacity of one million barrels, with deliveries to be completed by November 13.
US Energy Secretary Chris Wright described the step as a temporary measure to address a temporary supply disruption.
Trump announced on October 9 that he had agreed with Russian President Vladimir Putin to supply the US and global markets with additional quantities of diesel fuel, considering that this would contribute to lowering prices.
Source: Syrian Arab News Agency (SANA)
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