White House Considers Defence Production Act to Boost US Oil Refining Capacity
The White House is considering using the Defence Production Act to expand US oil refining capacity in response to global crude supply disruptions and price spikes.
A recent meeting between President Donald Trump and nearly a dozen US refiners discussed how federal support could be used to add capacity, but no final decisions were made.
Refining executives told officials that federal money would be better spent on making refineries more efficient or expanding existing plants rather than financing an entirely new refinery, which would be considerably more costly and take years to complete.
The Defence Production Act gives Trump broad powers to direct industrial resources and provide financial incentives for companies to expand production of materials deemed important to national defence.