Keep Importing Oil From U.S. Companies Stationed Abroad

Affordable, abundant energy is the pre-requisite for a modern, thriving economy and a secure America.

The United States is working its way to energy independence, which is an important reality for our national security and economic prosperity. This is true after the U.S. suffered through four years of the Biden administration’s political war on energy and modernity. Energy abundance and a secure border are the two most obvious and important differences to emerge so far in the second Trump administration.

To move America toward an energy-abundant future, the Trump administration must support and ensure that we keep all sources of energy open to the American market, including foreign oil leases controlled by American companies.

The United States still imports a great amount of oil – it was 8.51 million barrels per day in 2023 – because we need it. The ‘Drill, Baby, Drill’ approach of the Trump administration will help lower that number in the future, but not the immediate future. More exploration and drilling in America is the first not the last step in an extensive process that involves companies taking risks to meet America’s energy demand.  

The Biden administration did all they could to put roadblocks in the way of drilling. Yes, they claimed to have thousands of leases for drilling already approved, but many of those locations were either dry or impractical – it was all politics; a fantasy to give the pro-Biden media talking points. Citing those leases was a numbers illusion, never a practical reality. And, the media played along.

“For American energy, the Overton Window has gone from almost shut under President Biden to fully open under Trump. Energy scarcity and its policy of Net Zero by 2050 has been replaced by energy abundance and a ‘Drill, Baby, Drill' mindset.”

Not only did President Joe Biden place choke points in the exploration and drilling process, he simultaneously drained the Strategic Petroleum Reserve (SPR). According to Reuters, “In 2022, the administration of President Joe Biden announced a sale of 180 million barrels of oil, the largest ever SPR sale, in an attempt to lower gasoline prices.” That oil needs to be replaced, which only served to increase our dependence on foreign oil.

In an ideal world President Trump could snap his fingers and refill the SPR and strike oil everywhere a drill was placed in the ground, but building America’s energy future will take time, ingenuity, and good policy. Since oil is fungible – meaning it is all for sale on the world market, regardless of where it comes from, with the exception of heavily sanctioned countries like Iran, expanding from where we get oil will help make refilling the SPR less expensive.

Think of oil like water in a swimming pool; it doesn’t matter to which end you add water to the pool – the deep or shallow end – or which side you pour it in, it all ends up filling the pool.

The U.S. government has allowed American companies to purchase Venezuelan oil through a licensing agreement that is set to expire on May 27th. To keep prices low and help the American consumer, as well as pull the rug out from under China as it tries to make inroads in the western hemisphere, the Trump administration should extend that deadline.

Oil extracted from anywhere in the world ends up on the world market. While Venezuela is a damaged country with horrific leadership, their oil is useful – and it’s useful for American purposes. Many oil producing countries are not places you’d like to vacation, that doesn’t mean you don’t use their oil. Putting America first means leveraging America’s global adversaries to advance our own interests.

The Venezuelan government is moving to partner with China to buy their oil. Allowing American companies to purchase this oil is good for the U.S. economy and our national security. We do not want the Chinese to gain an ‘energy foothold’ in our backyard.  

For America, abundant, affordable energy is the key to a prosperous, secure future. Period. The Trump administration must continue to make America energy independent. It must implement and extend policies that encourage innovation and exploration. At the same time, the administration cannot let China partner with Venezuela to purchase oil. The Trump administration has already extended the lease once—the May 27^th deadline—that allows U.S. companies (Chevron Corp currently holds the lease) to pump and export Venezuelan oil. President Trump should extend the lease again. It’s good for America; bad for China.  

For more ideas on how to build America’s energy future, check out RealClear's Future of Energy Forum, scheduled for May 19 in D.C.