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On Monday, President Trump activated wartime powers under the Defense Production Act (DPA) to bolster the production of oil, gas, and coal.
This act grants the president the ability to ramp up the production of specific goods deemed essential for national security.
This week, Trump issued a series of five directives applying the DPA to sectors including oil, coal, natural gas infrastructure and exports, electric grid components, and large-scale energy and energy-related projects.
This decision comes in the wake of escalating tensions in Iran, which have led to a significant disruption in oil supplies. The Strait of Hormuz, a critical passage off Iran’s coastline, normally handles about 20% of the world’s oil transport. However, Tehran has capitalized on its strategic location, effectively stalling the flow of oil through this vital channel.
As oil is a commodity traded on a global scale, these disruptions have caused a dramatic surge in prices worldwide.
In his oil memo, which applies not only to oil production but also to refining and pipelines, Trump cited oil’s importance for “the Nation’s Armed Forces, industrial base, and crucial infrastructure.”
“Without immediate Federal action, United States defense capabilities will remain vulnerable to disruption,” Trump wrote.
His coal order specifically cited AI, saying “without sufficient coal-fired baseload power, the United States will lack the stable electricity required to support defense installations, industrial expansion, and the high-energy demands of emerging technologies, such as artificial intelligence.”
While somewhat vague, his order pertaining to large-scale energy and related infrastructure said that “financing risks, regulatory delays, and market barriers” were getting in the way.
Left-wing advocacy organization Public Citizen criticized the moves as an abuse of the DPA.
“President Trump is abusing emergency authorities and wasting taxpayer resources through unprecedented abuse of the Defense Production Act to promote his politically-favored fossil fuel projects at the expense of energy affordability and common sense,” said Tyson Slocum, director of Public Citizen’s Energy Program in a written statement.