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"Trump is abusing emergency authorities and wasting taxpayer resources through unprecedented abuse of the Defense Production Act to promote his politically favored fossil fuel projects."
US President Donald Trump on Monday invoked wartime authority in an effort to boost domestic fossil fuel production—with the help of taxpayer funding—as his administration faces growing political backlash over gas price spikes, driven by the illegal assault on Iran.
The five presidential memos Trump signed cite his executive powers under the Cold War-era Defense Production Act, which gives the president the ability to expand and accelerate production of key supplies. Critics accused Trump of abusing his emergency authority, once again, to give handouts to an industry profiting massively from the Iran war, which the president launched without congressional authorization.
"President Trump is abusing emergency authorities and wasting taxpayer resources through unprecedented abuse of the Defense Production Act to promote his politically favored fossil fuel projects at the expense of energy affordability and common sense," said Tyson Slocum, energy director at the consumer watchdog Public Citizen. "Today’s unjustified suite of executive orders is a wish list for the oil, gas, and coal industries, who are already enjoying record profits under Trump’s Energy Unaffordability Agenda."
“America is already—far and away—the world’s largest oil and gas producer, and the world’s largest petroleum and gas exporter," Slocum added. "Promoting more fossil fuel exports at a time when Trump has failed to deliver affordable, sustainable energy for American communities is just another example of the president’s incompetent, failed energy policies."
Trump's memos aim to bolster petroleum, coal, and liquefied natural gas production, asserting that the nation's "current inadequate and intermittent energy supply leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States’ prosperity and national security."
"Action to expand the domestic petroleum production, refining, and logistics capacity is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability," the memos state.
Trump signed the directives hours after he publicly disagreed with his own energy secretary's assessment of when Americans can expect to see relief at the gas pump, where they're paying over $4 per gallon on average nationwide. US Energy Secretary Chris Wright said Americans might not see significantly lower gas prices until next year; Trump claimed that assessment was "totally wrong,” even as economists warned of lasting impacts to US and global energy markets stemming from the Iran war.
The world's largest oil and gas giants have profited massively from war-induced price spikes, with the biggest beneficiaries—including US-based Chevron and ExxonMobil—banking over $30 million an hour in windfall gains during the first month of the conflict.
Trump's memos came days after a group of Republican lawmakers in the House and Senate introduced legislation aimed at shielding fossil fuel companies from legal action to hold them accountable for their central role in the climate emergency.
“Big Oil companies have raked in massive profits at the pump while lying to the American people about the catastrophic harm of their products, and now they want to deny Americans their rightful day in court and stick taxpayers with the bill for the mess they made," Richard Wiles, president of the Center for Climate Integrity, said in response to the bill. "If fossil fuel companies have done nothing wrong, why do they need immunity?"
US Energy Secretary Chris Wright told CNN on Sunday that gas prices might not drop below $3 until next year.
US President Donald Trump on Monday said his own energy secretary, former fracking executive Chris Wright, was incorrect when he said gas prices may not get below $3 per gallon until next year.
In a Sunday interview with CNN's Jake Tapper, Wright was asked when Americans could expect to see gas prices fall significantly after they spiked to over $4 per gallon on average nationwide because of Trump's illegal war of choice with Iran.
"I don't know," Wright responded. "That could happen later this year. That might not happen until next year."
In an interview with The Hill on Monday, Trump said Wright was "totally wrong" about the projection, and insisted that gas prices would plummet "as soon as [the war with Iran] ends."
Despite Trump's claims that gas prices will come down rapidly after the end of the war, The New York Times reported on Monday that the negative effects of Iran's closure of the Strait of Hormuz, which has choked off roughly 20% of global petroleum shipments, is just starting to be felt.
The impact of the strait's closure is being felt most acutely in East Asia, where oil supply shortages are having a ripple effect that is likely to spread throughout the world if the strait remains closed for much longer.
"Even if there is a peace deal soon," the Times reported, "the future... will likely include months of canceled flights, surging food prices, factory pauses, delayed shipments and empty shelves for products long considered quick and easy to buy worldwide: plastic bags, instant noodles, vaccines, syringes, lipstick, microchips and sportswear."
The Times added that "even if the Strait of Hormuz stabilizes tomorrow, it could take years for oil and gas output and shipping to reach fat prewar levels."
Bob McNally, founder and president of the consulting firm Rapidan Energy Group, echoed the Times' analysis in an interview with Newsweek published on Monday.
"It is likely we will feel the effects of energy disruptions through the end of the year," McNally explained. "Even if the conflict and disruptions were to end today, the ripple effects would be felt for many months. Just restarting Gulf production and flows would take three to four months. Repairing damage to facilities could take longer."
Mark Zandi, chief economist at Moody's Analytics, also projected more financial pain for US consumers in the months ahead.
"It doesn’t look like gasoline prices will return to pre-war levels anytime soon," Zandi wrote in a Sunday social media post. "That’s even if the war ends soon, which looks iffy, to say the least. And this abstracts from what Americans will need to shell out for higher prices on everything from groceries to airfares in the coming weeks and months. The financial pain caused by the war and its fallout on consumer spending and the economy is set to intensify."
“Mandating a restart of these defective oil pipelines won’t curb high gas prices, but it will put coastal wildlife at huge risk of another oil spill," one advocate said.
State leaders and environmental advocates responded with outrage after the Trump administration on Friday ordered the restarting of a California pipeline that caused one of the largest oil spills in the state's history, a move that comes as oil prices have skyrocketed following President Donald Trump's launching of an illegal war against Iran and Iran's subsequent closure of the Strait of Hormuz.
After Trump issued an executive order on Friday authorizing the Department of Energy (DOE) to ramp up oil and gas development under the Defense Production Act, Energy Secretary Chris Wright ordered Sable Offshore Corp. to restart operations on the Santa Ynez Unit and Pipeline System, which include an offshore rig and a network of offshore and onshore pipelines along the Santa Barbara coast. Among them is a pipeline that ruptured in 2015, spilling around 450,000 gallons of oil into Refugio State Beach and killing hundreds of marine mammals and sea birds.
“Californians have repeatedly rejected dangerous drilling off our coast for decades," Sen. Alex Padilla (D-Calif.) said in a statement on Saturday. "Now, after dragging the US into a war with Iran and driving up oil prices, the Trump administration is trying to exploit this crisis to further enrich the oil industry at the expense of our communities and our environment."
In his statement, Wright emphasized the defense benefits of resuming drilling, arguing that "today’s order will strengthen America’s oil supply and restore a pipeline system vital to our national security and defense, ensuring that West Coast military installations have the reliable energy critical to military readiness.”
“Directing a private oil company to push its project through without safety checks and adherence to California laws that keep our coast safe is appalling and illegal."
The DOE added that "Sable's facility can produce approximately 50,000 barrels of oil per day, a 15% increase to California’s in-state oil production, that can replace nearly 1.5 million barrels of foreign crude each month."
Yet, far from a novel response to an unexpected emergency, the order is actually an escalation in a preexisting battle between California and the Trump administration over the future of the pipeline system. The state's Attorney General Rob Bonta sued to stop the administration from a federal takeover of two of the pipelines in January.
Sable also faces several lawsuits due to its attempts to restart the system after it purchased it from ExxonMobil in 2024, and has not yet cleared all of the state permitting requirements, according to the Center for Biological Diversity.
"In its latest brazen abuse of power, the Trump administration is attempting to seize exclusive federal control over two of California’s onshore pipelines," Bonta said on social media Friday evening. "We will not stand by as this administration continues their unlawful all-out assault on California and our coastlines, and we are reviewing all of our legal options."
California Gov. Gavin Newsom also spoke out against Wright's announcement.
"Trump knew his war with Iran would raise gas prices," he wrote on social media. "Now he wants to illegally resurrect a pipeline shut down by courts and facing criminal charges. And it won't even cut prices. I refuse to let Trump sacrifice Californians, our environment, or our $51 billion coastal economy."
The Center for Biological Diversity noted that this order would mark the first time that the Defense Production Act was used to force an oil company to restart out-of-use Infrastructure and to disregard the state permitting process.
“This is a revolting power grab by an extremist president. Trump is misusing this Cold War-era law just to help a Texas oil company skirt vital state laws that protect our coastline, and Californians will pay the price,” Talia Nimmer, an attorney for the center, said. “Mandating a restart of these defective oil pipelines won’t curb high gas prices, but it will put coastal wildlife at huge risk of another oil spill. Overriding state law to let an oil company restart pipelines sets a radically dangerous precedent. It’s clear that no state is safe from Trump.”
The center also promised to push back against the order.
“Directing a private oil company to push its project through without safety checks and adherence to California laws that keep our coast safe is appalling and illegal,” Nimmer said. “We’re exploring all legal avenues. This dangerous action should be swiftly blocked by the courts.”