Not so long ago it seemed the days of placating foreign despots for energy reasons was largely over. Big increases in domestic output made the U.S. the world’s largest petroleum producer and a net oil exporter. There was even talk of energy independence. But tens of millions of Americans have learned the hard way at the gas pump that oil – which fuels more than 90 percent of U.S. automobiles – continues to be priced by a volatile global market irrespective of how many wells we drill at home. And President Biden’s recent trip to the Middle East was a reminder of the major role oil plays in America’s relationship with Saudi Arabia and other Gulf monarchies. Getting beyond the current crisis and achieving true energy security means breaking the grip of oil on the American economy and influence on American policymaking.
Achieving those goals in an economically viable and environmentally sustainable way is a source of great political debate and controversy. It is the work of years, decades even. But we can start now with a measure that has wide bipartisan support and can take effect sooner rather than later: the No Oil Producing and Exporting Cartels (NOPEC) Act. In summary, NOPEC would end the exemption to U.S. anti-trust laws against price fixing that the Organization of Petroleum Exporting Countries (OPEC) has enjoyed for decades. Consider that after Russia invaded Ukraine OPEC did not raise previously agreed upon production limits, allowing prices to spike. The cartel has since begrudgingly boosted supply somewhat – most recently this week – but the damage has been done. Going forward, the threat of legal action provided by NOPEC would help deter the Saudi-led cartel from inflating gas prices by sitting on accessible oil reserves. NOPEC has passed the Judiciary Committees of both the House and Senate by comfortable bipartisan margins. The last vote was more than three months ago. It deserves prompt action in the House and on the floor of the full Senate.
In addition to using legal sticks to bring more OPEC oil to market, we also need to consider carrots in the form of some additional domestic production – both as an additional means to temper gas prices and, importantly, to refill the depleted Strategic Petroleum Reserve. There is no politically viable transition to future renewable energy sources without first meeting the energy needs of today. Solutions-oriented Republicans and Democrats should agree to support policies that keep the lights on and the vehicles moving in the cleanest manner while aiming to retire fossil fuel infrastructure over time.
Nonetheless, simply drilling more wells – on or off-shore – and adding more pipelines will not address the underlying energy security challenge. Truly ending this dependency over the longer term requires moving U.S. ground transportation systems away from oil by taking advantage of domestic sources of electricity, including mass adoption of electric vehicles (EVs).
The electrification provisions of the Inflation Reduction Act recently crafted by Senators Chuck Schumer and Joe Manchin brings us closer to this goal in several ways. It included new funding to electrify the U.S. Postal Service vehicle fleet (the nation’s largest). It would extend the EV purchasing tax credit and sustain growing demand for these vehicles by making them more affordable to a wider swath of consumers. The legislation also pushes companies – albeit on a overly aggressive timetable – to develop supply chains for critical minerals and other batter materials within the U.S. (or from reliable trading partners).
This comprehensive approach – supply and demand – is called for because projected global output of EV materials – for example, aluminum for the auto frame, nickel and lithium for the battery – is far short of what’s needed. Moreover, the existing supply chain for EV batteries is largely controlled by Chinese companies – especially the critical processing phase. America cannot liberate itself from one problematic energy dependency (oil) only to find ourselves reliant on a hostile foreign power to build the next generation of automobiles.
Getting the energy transition right means that future U.S. presidents should not be forced to haggle with foreign strongmen over energy supplies – be they Saudi princes or Chinese Communist Party apparatchiks. Then we will have achieved something better and more attainable than energy independence – true energy security for the American people and our allies.
General Everhart is the former commander of the U.S. Air Force’s Air Mobility Command and currently a member of the Energy Security Leadership Council of SAFE, an organization dedicated to advancing transportation technologies to enhance energy security.