Given the recent energy upheaval in the Middle East linked to the conflict with Iran, along with the erratic oil price changes, here are five key points about energy geopolitics that Americans should be aware of.
First off, the U.S. is now producing more oil and gas than ever. Since 2022, it has outpaced every other country, including Saudi Arabia. To insulate ourselves from foreign supply issues, focusing on domestic oil production is crucial.
Second, despite the investment of $400 billion in taxpayer money through the Green New Deal, wind and solar energy continue to underperform. Fossil fuels still account for 80% of our electricity generation, which hasn’t changed much over time.
Third, the Middle East has historically been a shaky source of energy for the U.S. Prices have invariably spiked during times of regional unrest, which seems to happen roughly every decade.
Fourth, the United States is now a net exporter of oil and gas, boasting the biggest production increase globally. Overall, the country is far less reliant on Middle Eastern oil than it was in previous decades.
The Department of Energy highlights that:
- U.S. crude oil production hit a record high of over 13.6 million barrels per day in 2025.
- The nation currently produces 24 million barrels of oil and liquid fuels daily—more than Russia and Saudi Arabia combined.
- In terms of natural gas, the U.S. matches the combined output of Russia, Iran, and China at about 110 billion cubic feet per day.
Fifth, increased oil prices contribute significantly to overall inflation. Since oil is a primary factor in the cost of nearly everything—housing, food, healthcare, technology—keeping energy prices low or stable is essential to curbing inflation.
In short, the best approach to rejuvenate the economy is to prioritize oil drilling. This also underscores the impracticality of aiming for “net zero fossil fuels.”
If Donald Trump’s assertion holds true that the disruptions to Iranian oil are only temporary, it’s likely that oil prices could fall back to the $40 to $60 range, hinting at a significant economic upswing in 2026.
