Trump uses Cold War law to aid oil industry
President Donald Trump of the United States has decided to invoke the Defense Production Act, a law dating back to the Cold War era, to support the production and refining of oil and related activities, considering these sectors vital to national defense. In his presidential memo, he referenced this law to provide financial incentives aimed at stimulating the oil industry, pipeline projects, and liquid fuel storage, amid rising oil prices resulting from international conflicts—particularly between the United States and Iran—and the impact of energy shipment restrictions. This move comes at a time when the market is facing challenges due to supply crises and rising costs, which have also affected the political economy of the president ahead of the midterm elections. The United States' oil production reached approximately 13.6 million barrels per day in 2025, maintaining its status as the world's largest oil producer.
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