Trump Weighs Using Defense Production Act to Boost Refining Capacity
The White House is considering using the Defense Production Act to expand US oil refining capacity as the conflict with Iran exposes the country's vulnerability to global crude supply disruptions and price spikes.
This extraordinary step highlights the growing pressure on President Trump to show he can contain the impact of surging fuel prices on consumers and businesses ahead of November's midterm elections.
The proposal to use the act came up during a recent meeting between Trump and nearly a dozen US refiners, where White House officials sought to determine how federal support could best be used to add capacity.
US refineries are already running near full tilt, with utilization reaching 98%, according to the latest data. The high utilization underscores the challenge facing the administration: refiners are producing at near-capacity levels, but tight global supplies and strong demand are keeping fuel prices high.