WASHINGTON, D.C. (RFD-TV) — The Energy Department plans to use up to $150 million in Defense Production Act funding to expand domestic petroleum production, storage and refinery capacity as fuel costs remain a major expense for producers.
The department says the funding can support projects involving refining, petroleum production, storage and logistics. The stated goal is to increase output of gasoline, diesel, jet fuel and other refined products by millions of gallons per day.
The effort follows a presidential determination that petroleum production, refining, pipelines, storage and marine terminals are essential to national defense. The order authorizes federal purchases, commitments and financial support for qualifying projects.
For agriculture, additional refinery and logistics capacity could improve fuel availability, but the department has not identified specific projects or guaranteed lower diesel prices. Project selection and construction timelines will determine the near-term impact.
The administration says the broader objective is to reduce energy supply vulnerabilities and strengthen domestic capacity during a period of high crude oil and diesel prices.
