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

PUBLISHED Sep 11, 2026, 1:19 PM ET

The administration is evaluating whether to invoke the Cold War-era Defense Production Act to expand domestic oil refining capacity as fuel prices soar nationwide. White House officials are reviewing options to prioritize equipment contracts, extend financial assistance, and direct crucial industrial materials toward fuel production infrastructure. The potential executive action responds to constrained supply chains and high retail gasoline costs impacting American consumers. However, energy industry leaders and analysts warn that government mandates face severe structural limitations. Restarting mothballed refining units or constructing new processing facilities requires extensive capital, specialized heavy machinery, and rigorous environmental permitting timelines that emergency powers cannot instantly compress. Major refiners have alternatively prioritized financial discipline and shareholder returns over capital-intensive fossil fuel expansions, complicating federal intervention. Furthermore, broad fossil fuel investments conflict with broader administration climate goals. Officials continue weighing economic pressures against operational hurdles before determining whether to formally execute the emergency statute.

By Ayesha A. | JQJO News

Media Bias

Articles Published:: 31
Right Leaning:: 3
Left Leaning:: 7
Neutral:: 21

Explain Framing

Left: Highlighted consumer cost relief and potential accountability for energy corporations. Center: Focused on supply chain mechanics and operational industry pushback realities. Right: Emphasized market limitations and conflicts with administration climate objectives.