Decades of Oil Drilling Expansion: The U.S. as a Net Exporter and Global Energy Market Game-Changer

The United States has seen a significant increase in oil production over the past few decades, driven largely by the advent of fracking technology in the mid-2000s. This surge in production has not only given the U.S. additional leverage in the global energy market but has also made the country a net exporter of oil.

According to data from the government's Energy Information Administration, U.S. crude oil production has been on the rise for decades, covering President Trump's first term as well as the Democratic administrations that preceded and succeeded him. In January 2009, when President Obama took office, the U.S. produced just over 159 million barrels of crude oil. In March of this year, that figure stood at over 418 million barrels.

The increase in production has been fueled by the explosive growth of fracking, which is a drilling technique that produces both oil and natural gas. This growth has been nurtured by a succession of presidents, despite President Trump's regular claims that President Biden "crushed" the industry.

The surge in U.S. oil production has given the country additional leverage in the global energy market and has made it less sensitive to global oil price shocks. According to American Action Forum president Douglas Holtz-Eakin, "the United States has become far less sensitive" to such shocks due to the fracking revolution.

However, there are still limits to how much the U.S. can be protected from oil shocks. Federal Reserve Chair Jerome Powell noted on Tuesday that while the thought was that the U.S. would simply drill more and not have sustained oil shocks, "that is actually in question now" because oil companies are becoming more cautious after being burned by overcapacity.

Despite these limitations, President Trump's position on the energy issue is clear, with recent missives from the president pressuring oil companies to keep prices low and calling for more U.S. drilling. "To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!" he wrote on Monday.

The change in U.S. oil production has spanned administrations and has even been driven by the fossil fuel sector itself, which has repeatedly expressed its preference for President Trump, often citing President Biden-era regulations as holding back company efforts.

In short, the surge in U.S. oil production has been a game-changer for the global energy market and has given the country additional leverage in its dealings with other nations. While there are still limits to how much the U.S. can be protected from oil shocks, the increase in production has made the country far less sensitive to such shocks in recent years.