Russian invasion underscores strategic value of American energy

Russia’s invasion of Ukraine is reminding the world of American energy’s critical role in global stability. The invasion also underscores the strategic value of U.S. energy production to support both our national security and the security of our allies.

As the world’s biggest producer of oil and natural gas — and now the top exporter of LNG at the end of last year — America’s energy workers have hard-earned our country’s status as an energy superpower.

As recently as the early 2000s, it was common to hear claims that we were “running out of oil.” America’s largest oilfield, the Permian Basin in Texas and New Mexico, was considered in decline. U.S. oil production peaked in 1970 and steadily declined for 40 years.

Then almost overnight, hydraulic fracturing and horizontal drilling technologies ushered in the American Shale Revolution, with annual U.S. crude production more than doubling, from just over 2 billion barrels to nearly 4.5 billion barrels. We were able to reduce the U.S. trade deficit, and we dramatically reduced our reliance on foreign oil, with approximately 70 percent of the crude oil processed in our Gulf Coast refineries now coming from America.

In support of our industry’s work to unlock our vast natural resources to meet demand here in America and growing demand overseas, a bipartisan bill was passed that lifted the U.S. crude oil export ban in 2015. The export ban, enacted in 1975 during the Arab oil embargo and a period of scarcity, had become a relic of a world that no longer existed. Now, the United States could meet domestic needs while also providing allies and trading partners with a reliable and secure source of energy. Since the ban was lifted, the United States has transformed itself from a minor league player to a top competitor in the major league, becoming fourth largest crude oil exporter in the world. 

There is no better example of American innovation causing a transformation of economic markets and geopolitical power. 

Just as important, as the United States became a leader in providing low-cost, reliable energy, we also became the world leader in reducing greenhouse gas emissions since our energy is produced under the most stringent regulations in the world. According to the EPA, from 2005-2018, total U.S. energy-related CO2 emissions fell by 12 percent. In contrast, global energy-related emissions increased nearly 24 percent from 2005-2008. Methane emissions from oil and natural gas systems are down 23 percent since 1990, according to the 2020 edition of EPA’s Inventory of U.S. Greenhouse Gas Emissions and Sinks.

The Obama administration recognized the importance of America’s energy leadership in their 2015 National Security Strategy, saying “America’s energy revival is not only good for growth, it also offers new buffers against the coercive use of energy” by other nations. They also observed that the “challenges faced by Ukrainian and European dependence on Russian energy supplies puts a spotlight on the need for an expanded view of energy security that recognizes the collective needs of the United States, our allies, and trading partners as well as the importance of competitive energy markets.”

With Russian tanks on the outskirts of Kyiv, the case for American energy has only strengthened. Now is the time for the Biden administration to clearly and unequivocally signal support for American oil and natural gas.

The fallout from Russia’s invasion of Ukraine is causing energy prices to spike in Europe and around the world and presents an opportunity for President Biden to embrace a long overdue shift in policy to further leverage American energy as a stabilizing force in geopolitics.

Russia’s economy is heavily dependent on energy exports, which means that any attempt to isolate Russia from the rest of the world will require additional supplies of crude to fill the gap. The president should signal to the world that American oil and natural gas are vital to countering aggression from bad actors like Russia, and that energy exports are a key part of our strategy.

It’s important for our allies abroad that we continue our strong record of stable and reliable energy exports. But words about protecting global energy markets and ensuring adequate supplies will ring hollow if our own production is being curtailed at home. So, while the first step is the administration signaling support, it needs to be followed up with important policy steps taken to restart regular leasing on federal lands and waters.

The U.S. also needs to invest in its energy infrastructure. The administration must call on FERC to reverse its new pipeline permitting policy that will dramatically hinder the ability to build the energy infrastructure needed to access U.S. resources and will make energy more expensive for American families.

The men and women producing America’s oil and natural gas are committed to supporting their local economies and communities and are working hard every day to help advance our country’s security interests. With support from this administration, we can together firmly establish the U.S. as a stable supplier of energy for Europe and our allies around the globe for decades to come.

Anne Bradbury is CEO of the American Exploration & Production Council (AXPC), whose membership is composed of America’s largest independent oil and natural gas exploration and production companies. She previously served as one of the top legislative strategists and technicians in Congress as floor director to two successive Speakers of the House and deputy floor director in the offices of both the Majority and Minority Leader. She was also a partner at the Duberstein Group.