The U.S. has helped cushion the global energy shock from the Hormuz disruption through record oil production, LNG exports, and fuel shipments, helping stabilize international markets.
This role is straining domestic supplies, with U.S. crude and fuel inventories falling below five-year averages as record exports and high refinery utilization tighten the domestic market.
The U.S. energy system has helped mitigate the shock loss of oil and LNG supply from the Middle East when the Strait of Hormuz closed to traffic.
The record American crude oil production and huge natural gas production and rising LNG exports were decades in the making, during which companies invested billions of dollars every year to increase oil, natural gas, and fuel supply.
However, this situation also threatens the U.S. domestic market, as oil and fuel inventories are dwindling.
The U.S. oil and gas industry has invested about $150 billion every year in oil and natural gas upstream production alone, fundamentally changing America’s role in global energy markets.
The U.S. energy system, which helps stabilize global energy supply, will continue to require ongoing investments.
