U.S. Chamber on Energy Policy

Record High Russian Oil Imports Show Need for Smarter Domestic Energy Policy

By Marty Durbin, Senior Vice President, Policy, U.S. Chamber of Commerce

In 2021, the United States imported 245 million barrels of crude oil and related petroleum products from Russia. This equates to nearly 672,000 barrels per day—an all-time record and a 79% increase from just four years ago…

With oil prices now pushing $100 per barrel and Russia dependent on energy sales to fund the government’s budget—including its military and the invasion of Ukraine—the leverage Russia’s energy exports exert over the West is now on display for the world to see. This reality is forcing urgent reconsideration of energy policies that contribute to this dependence.

What can the USA do?

First, the Biden administration should end its ban on oil and gas leasing on federal lands and waters, and accelerate permitting of new exploration as well as the development of a new five-year program for offshore leasing. Production on federal lands and waters accounts for 22% of total oil production and 12% of natural gas.

Second, DOE should approve permits for six new and expanded LNG export terminals that have been awaiting action for months, and in many cases for more than a year. Collectively these projects would increase natural gas export capacity by roughly 25%, or about four billion cubic feet per day. Such an expansion of U.S. LNG exports would pair nicely with Germany’s newfound desire to diversify its imports from Russia.

The administration should also call on the Federal Energy Regulatory Commission to reverse its new pipeline permitting policy that will dramatically hinder the ability to build the energy infrastructure needed to access the United States’ plentiful domestic natural gas resources.

Finally, as noted in a recent coalition letter of energy trade associations, the White House should work with the U.S. International Development Finance Corporation to release $300 million in funding for the Three Seas Initiative that was promised to Eastern Europe in 2020 for the construction of natural gas infrastructure necessary to diversify energy supplies.

Full Story on the U.S. Chamber Website