Key facts
- Record U.S. crude oil and natural gas production has helped mitigate global supply shocks caused by the closure of the Strait of Hormuz.
US Energy Output Cushions Global Supply Shock From Hormuz Closure
IN SHORT
Record U.S. crude oil and natural gas production, alongside rising LNG exports, have helped mitigate global supply shocks following the closure of the Strait of Hormuz. However, this role comes at the cost of depleted U.S. inventories and tighter domestic markets.
Key Numbers
$150 billionannual investment in US oil and gas upstream production since shale revolution
12%U.S. middle distillate inventories below five-year average
$4 per gallonnational average gasoline price
$1increase in gasoline price since late February
$0.90increase in gasoline price compared to last year
Who's Involved
American Petroleum Institute (API)
oil lobby that analyzed U.S. role in global energy markets
EIA
provided petroleum status report data on inventories
↳ Why This Matters
The U.S. role as a major energy producer and exporter is critical for global energy security, influencing international prices and supply stability, particularly during geopolitical crises. However, increased exports strain domestic inventories and can lead to higher consumer prices within the U.S.