Presidential Directive on Boosting Domestic Petroleum Defense Capacity

The Facts -

U.S. Declares Energy Emergency, Enhancing Domestic Petroleum Capacity

In a decisive move to address the nation's energy challenges, President Donald J. Trump has issued a memorandum highlighting the critical need to boost domestic petroleum production, refining, and logistics capabilities. This action follows the issuance of Executive Order 14156, which declared a National Energy Emergency due to inadequate energy infrastructure posing risks to the economy and national security.

The memorandum, addressed to the Secretary of War, emphasizes that the country's current energy supply limitations represent a unique threat, potentially exposing the United States to vulnerabilities from hostile foreign entities. These constraints, according to the document, threaten the prosperity and safety of the nation.

Key Findings and Presidential Determination

The President identifies resilient domestic petroleum capabilities as vital to national defense. Petroleum is pivotal for fueling the Armed Forces and sustaining critical infrastructure. The memorandum warns that without immediate federal intervention, the U.S. defense mechanisms are at risk of disruption.

Utilizing authority under the Defense Production Act of 1950, as amended, President Trump determines the following:

1. Domestic petroleum production, refining, and related logistics are deemed essential to national defense, encompassing exploration, production, pipeline transmission, storage, and marine terminals.
2. The U.S. industry cannot, without presidential intervention, timely provide these necessary capabilities due to financial constraints, lengthy lead times, permitting issues, and supply chain bottlenecks.
3. Implementation of purchases, commitments, and financial initiatives under the Act is the most efficient and practical solution to meet these needs.

Action Plan and Waivers

In response, the President has declared a national emergency under Executive Order 14156, necessitating actions to avoid a shortfall in industrial resources crucial for national defense. For this purpose, certain requirements of the Defense Production Act are waived to expedite the expansion of petroleum capabilities.

The Secretary of War is tasked with executing the President's determination, which includes facilitating necessary purchases and financial strategies to support these initiatives. This determination will be published in the Federal Register, and any conflicting provisions in previous documents are superseded.

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