Trump Invokes Defense Production Act to Boost US Energy Amid Iran Conflict

President Trump invoked the Defense Production Act to ramp up domestic energy production after military action in Iran disrupted global oil supplies. About one-fifth of the world's oil passes through the Strait of Hormuz, creating temporary shortages of oil and gas.

Trump determined that domestic petroleum production, refining and logistics capacity, along with coal and gas transmission, supply chains and energy infrastructure, are essential to national defense. These steps allow government purchases of key technology and actions to encourage exploration, development and mining of these resources.

Trump stated that oil fuels the nation's armed forces, industrial base and crucial infrastructure. He added that inadequate gas production and storage capacity would leave the United States and its partners dangerously exposed in times of crisis.

Some Asian countries have issued work-from-home orders and four-day work weeks due to energy shortages, reminiscent of the 1970s oil crises.

Trump has worked over the past 15 months to promote domestic energy production, including in Alaska. On his first day in his second term, he signed an executive order overturning Biden administration restrictions on energy development to tap Alaska's resources.

Trump has backed the Alaska LNG Pipeline, mentioned in his 2025 State of the Union address. The pipeline would export liquefied natural gas to Japan and South Korea, creating Alaska jobs and reducing reliance on energy from hostile powers. Alaska's Legislature may act soon to advance the project.

Congress supported energy efforts last year through the working families tax cuts act. It lowered royalty rates for oil and gas on federal lands, spurring more leases and wells. The law also mandated new onshore and offshore oil leases, including in Alaska.

The Biden administration curbed domestic production, blocking legally required areas and canceling leases on Alaska's Coastal Plain, which a judge ruled illegal. Those moves increased US dependence on Russia and Venezuela for energy.

Alaska holds proven reserves of 3.4 million barrels of oil and 125 trillion cubic feet of natural gas. Trump's Defense Production Act determination builds on prior actions to enhance security, lower gas prices and boost production and jobs nationwide.