How Trump's energy dominance turned into hubris: Bousso
USO•The Iran war and higher US fuel costs have turned President Donald Trump’s energy-dominance policy into a political liability. Brent crude nearly doubled to a March peak of $118 a barrel, while US gasoline topped $4.60 a gallon in May and diesel reached a record $6.50 in September.
1. Energy dominance strategy
Trump built his energy policy around expanding oil, gas, coal and nuclear power, seeking to use the United States’ position as the world’s leading oil and gas producer to strengthen its economic and foreign-policy influence. US crude production has risen from about 5.5 million barrels per day in 2010 to nearly 14 million bpd, and the country accounts for more than a quarter of global LNG exports.
2. War disrupts energy markets
The war with Iran, launched on February 28, led to the effective closure of the Strait of Hormuz, a route for roughly one-fifth of global energy supplies. Brent crude peaked at $118 a barrel in March and is trading around $110, even as crude flows from the Middle East have mostly recovered. The conflict also disrupted supply routes and pushed shipping prices higher.
3. Costs reach US consumers
US producers and exporters benefited from higher global prices, while energy independence offered consumers some protection compared with Asian economies. But US gasoline rose above $4.60 a gallon in May, and diesel reached a record $6.50 in September. The column argues that the episode highlights the difference between controlling energy supply and controlling prices, and says the conflict could weaken other countries’ interest in oil and gas.
