This story was originally published on the Conversation and has been republished here with permission.
In recent weeks, a new energy buzzword has taken flight from Washington, making stops in Alaska, North Dakota, Texas, Utah, and more: American energy dominance. Taking a cue from a 2016 speech by then-candidate Donald Trump, top federal officials including Energy Secretary Rick Perry and Interior Secretary Ryan Zinke have begun to trumpet the notion of energy “dominance.”
Although no Cabinet official has offered a precise definition, it’s a recurring theme in a set of administration events organized around energy policy, including a planned speech by Trump emphasizing exports of coal, natural gas, and oil.
For decades, U.S. politicians have trumpeted the notion of energy “independence,” focused primarily on the need to eliminate oil imports from OPEC nations and other countries that may not share U.S. interests. But as other energy policy experts have observed, “independence” was never a smart energy goal. Isolating the U.S. from global energy markets is neither in the interest of domestic consumers nor newly resurgent oil and gas producers in the U.S.
For consumers, access to international markets ensures energy supplies at more stable prices. For instance, consider what would happen if a hurricane shut down production and refining along the Gulf Coast, the hub of the U.S. oil and gas industry. Without access to global markets, prices for motor fuels, home heating fuels, and other products would be far more volatile.
Spurred by increased oil and gas production as a result of the shale revolution, these policy changes have resulted in dramatic growth in U.S. energy exports. In fact, net energy exports (energy exports minus energy imports) have risen to their highest level in decades.* The United States could even be a net energy exporter by 2020 under one optimistic scenario.
This is a historic change, and administration officials are right to point out that the boom in energy production has benefited local economies, boosted tax revenues, and increased U.S. leverage in diplomatic matters with countries like Russia and Iran. It has also raised important environmental and social concerns in impacted communities, such as soil and water contamination from oil and gas wastewater spills, increased traffic accidents, and more.
But does a strengthened oil and gas industry put the United States on track to energy dominance? In a word, no.
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