The White House considers invoking the Defense Production Act to expand refining capacity in response to fuel prices and midterm election pressures.

智通财经2026/09/13 23:36

Show original

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

Two insiders revealed that as conflicts with Iran expose the United States’ vulnerability to global crude oil supply disruptions and sharp price increases, the White House is weighing the use of the Defense Production Act to expand US oil refining capacity. This move highlights the growing pressure faced by the Trump administration, as the November midterm elections approach, to prove its ability to contain the impact of soaring fuel prices on consumers and businesses.
Recently, during a meeting with nearly ten US refining companies, Trump discussed proposals to invoke the Act. White House officials are trying to determine the best way to use federal support to increase refining capacity. Although no final decision was made at the meeting, related discussions are expected to continue. Refinery executives told officials that rather than funding the construction of brand-new refineries, federal funds should be used to improve the efficiency of existing plants or expand them, since building new refineries is far more costly and would take years to complete.
The Defense Production Act is considered a last resort and has never been used to boost refining capacity before. The law gives the President broad powers to allocate industrial resources and provide financial incentives to businesses expanding the production of materials deemed crucial for national defense. The latest discussions are based on a presidential determination issued by Trump in April, which authorized the use of the Act to support and expand US oil production, refining, and logistics capabilities.
White House spokesperson Rogers stated that US refining capacity is critical to ensuring continued access to safe, affordable, and reliable energy supplies, and expanding refining capacity is a top priority for the President and his energy team. They are evaluating specific plans to improve refining capacity through regulatory reform, faster approvals, and increased investment. The latest data shows that US refiners are operating at 98% capacity, near maximum output, highlighting the challenge facing the administration: production is near its limit, but tight global supply and strong demand are keeping fuel prices high. The White House is also pushing to expand access to foreign oil supply channels and indicated that Venezuela could eventually add several million barrels to oil output, which would be processed by US refineries.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

The White House considers invoking the Defense Production Act to expand refining capacity in response to fuel prices and midterm election pressures.

You may also like

Crypto prices