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Recent economic and geopolitical turmoil has dramatically impacted the global energy landscape, with the U.S. finding itself at the intersection of multiple converging forces. Russia’s invasion of Ukraine sent crude oil prices surging upwards and increased demand for already low global inventories. In response to this economic instability, the U.S. government undertook a historic drawdown of the Strategic Petroleum Reserve, aiming to mitigate price volatility and protect consumers.
While a measured start has been made towards replenishing strategic reserves, apprehension remains regarding their sufficiency in the face of potential future disruptions. But despite these concerns, advances in geological understanding and technology like horizontal drilling and fracking have actually expanded production in recent years.
Change in Oil Production & Trade Over Time
After becoming a net exporter of oil in 2020 for the first time, the U.S. continues to reduce its reliance on foreign oil
Source: Construction Coverage analysis of U.S. Energy Information Administration data | Image Credit: Construction …