President authorizes DPA actions to expand domestic petroleum capacity

Presidential Determination No. 2027-01, dated October 22, 2026 and published in the Federal Register (Vol. 91, No. 207, pages 68011-68012; FR Doc No. 2026-22052, filed October 27, 2026), invokes section 303 of the Defense Production Act of 1950, as amended, to treat domestic petroleum production, refining, and logistics capacity as industrial resources essential to national defense. The determination waives the requirements of sections 303(a)(1) through (a)(6) of the Act and authorizes the Secretary of War to make purchases, purchase commitments, and employ financial instruments to expand these capabilities.

The President cites Executive Order 14156, issued January 20, 2025, which declared a national energy emergency, finding that inadequate energy production, transportation, refining, and generation constitute an unusual and extraordinary threat to the Nation's economy, national security, and foreign policy. The determination states that without Federal action, United States industry cannot reasonably be expected to provide the needed petroleum capacity in a timely manner because of constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply-chain limitations.

The Secretary of War is directed to implement the determination, including making the necessary purchases, commitments, and financial instruments to enable the projects, and to publish the determination in the Federal Register. The determination supersedes any prior memoranda, proclamations, or Executive Orders that are inconsistent with its provisions.

By invoking DPA authority, the determination provides a streamlined legal basis for the federal government to support and finance domestic oil production, refining, and logistics projects, aiming to avert a shortfall that would impair national defense capability.