PRESIDENT BIDEN: Americans have called upon us to marshal the forces of hope in the great battles of our time.
EVAN ABRAMSKY: With the election of Joe Biden in November 2020, the world geared up for a green
energy revolution. PRESIDENT BIDEN: And the battle to save our planet
by getting climate under control. EVAN ABRAMSKY:The truth, though,
is that the revolution is already happening and has been happening for the last 50 years.
It's time to rethink American energy policy.
From the late 19th through the early 20th century, America dominated the global oil market.
According to one estimate, the US was responsible for 85% of the world's crude oil production and refining.
Oil exports continued to far outpace imports for decades, granting the US and its allies
significant strategic advantages in both world wars 1 and 2.
However, as the post-war US economy boomed, domestic oil production struggled to keep up
with demand and restrictions on oil imports made it increasingly difficult for American consumers
and businesses to affordably meet their energy needs. In 1970, as American oil production peaked,
the Nixon administration eliminated a long-standing oil import quota system,
which opened the floodgates for cheap, foreign oil, produced primarily in the Middle East.
Just a few years later, when a group of Arab states attacked Israel, sparking the Yom Kippur war,
OPEC imposed an oil export embargo on western nations in an effort to reduce support for Israel.
The consequences were swift and dramatic. The cost of oil skyrocketed and the economy ground to a halt.
President Richard Nixon took swift action to stem the crisis. Daylight saving time was extended to
include most of the year. A reduced national speed limit and fuel rationing stalled the rapid pace of consumption.
Even christmas lights were ordered to stay dark. While the emergency measures were
eventually rescinded, a growing culture of conservation was further strengthened
by the embargo. Policy has mandated more and more energy-efficient cars, buildings, and appliances.
Many americans began to take pride in dialing down the thermostat, recycling and reusing
plastic, and buying and selling used items. Improved energy efficiency was not solely responsible for
America's return to net oil exporter status in 2020. Innovations in fracking, a technology that
enables the extraction of oil and natural gas from bedrock formations deep underground, deserve much
of the credit. Enhanced fracking techniques, such as horizontal drilling, have unlocked vast,
previously inaccessible deposits trapped in shale rock across the central and southern US.
While unpopular with most democrats, the technology is substantially responsible for America's
growing oil independence. Barring any drastic policy changes, these trends are likely to continue,
bolstered by an American economy that is shifting further towards knowledge and service industries.
The dramatic reduction in American fossil fuel imports has also given the US an edge among
allies and adversaries alike. The biggest losers in this sea change are Saudi Arabia and Iran,
which have forfeited significant petro-leverage. China and the European Union are at a disadvantage as well.
Both now remain far more dependent on foreign oil, as well as the United States' commitment to
defending the shipping lanes along which that oil flows. These advances have come without
a Green New Deal. While the Biden administration has stated that tackling the climate crisis is a top
priority for its domestic and foreign policy agendas, many questions remain unanswered about
what the administration is willing to give up to reach these goals. Putting the brakes on fracking
would require massive investment in green energy output or significant increases in imported oil,
both of which would come with significant short-run costs. Furthermore, such policy changes
might make the US more dependent on China at a time when the Middle Kingdom is seeking
to raise its global profile. Renewable energy could be ramped up much faster and cheaper
by purchasing from China's heavily subsidized green energy industry, but such a move would also make
US energy policy beholden to the whims of an increasingly assertive Chinese Communist Party.
While the Biden administration might decide that a Green New Deal deserves primacy above all else,
history serves as a stark reminder that reliance on foreign energy can have serious consequences.
Perhaps the best action would be to refine our current path: Allow the domestic energy sector to
reach its full potential, nurture the decades-old American spirit of conservation, and don't squander
the foreign policy windfalls of America's growing independence from hostile energy exporters.
To learn more about my thoughts on American energy policy, check out the links in the
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