EXCLUSIVE: White House weighs how to use Defense Production Act to expand US oil refining capacity, sources say - Reuters

The White House is reportedly evaluating whether to invoke the Defense Production Act as a means of expanding domestic oil‑refining capacity. Officials are assessing how the authority could be applied to increase the United States’ ability to process crude oil and meet fuel demand.

The Defense Production Act provides the president with the power to prioritize and allocate industrial resources for national defense purposes. It has been used in the past to accelerate production of a range of goods deemed essential to security, though its application has varied across sectors.

In the current review, senior advisers are examining the mechanisms by which the Act could be directed toward the refining sector. This would involve coordinating with private refiners to accelerate existing projects or initiate new capacity, subject to the usual regulatory and market considerations.

The Act is regarded as a tool of last resort, and officials note that it has never before been employed to add refining capacity. Its potential use in this area would therefore represent an unprecedented step.

No decision has been announced, and any implementation would require further discussion with industry stakeholders and relevant agencies. Details of the timing or scope of possible action have not been disclosed.