This legislation addresses the growing threat posed by transnational criminal organizations (TCOs) involved in the theft and smuggling of hydrocarbon products. Congress finds that Mexico-based TCOs, including designated Foreign Terrorist Organizations like the CJNG and Sinaloa Cartel, have developed large-scale enterprises to steal crude oil, diesel, and gasoline from Mexico's state-owned energy company. These illicit operations, which involve pipeline drilling, refinery raids, and bribery, are identified as the most significant non-drug illicit revenue source for these cartels, generating billions in lost revenue for the Mexican government and enabling their "narco-terrorist" activities. The bill highlights that the physical and logistical characteristics of hydrocarbon smuggling are substantially similar to narcotics smuggling, making the Department of Defense's existing counterdrug surveillance and information-sharing capabilities directly applicable. It emphasizes that the illicit transborder trafficking of stolen hydrocarbon products constitutes a significant threat to the national security and public safety of the United States . Congress asserts that the U.S. Government should prioritize this issue within its broader counterdrug and counter-transnational organized crime strategies. To address this threat, the legislation requires the Secretary of Defense to submit a comprehensive report within 180 days of enactment. This report must detail current Department of Defense activities aimed at denying, disrupting, or degrading TCOs engaged in hydrocarbon theft and smuggling. Furthermore, it must include recommendations for additional future activities, such as capacity building with partner nations , enhanced information sharing with U.S. civilian agencies, and assessments of key nodes within these criminal networks, along with an assessment of resources used.