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The concept of energy independence frequently resurfaces during political campaigns and energy price spikes. But what does it mean to be energy independent, and how realistic is this goal?
Dr. Harrison Fell, an energy economics expert and associate professor at North Carolina State University, explains that energy independence is often misinterpreted in political discussions. It is commonly defined as the ability to produce domestically all the energy consumed within the U.S., thus eliminating reliance on foreign sources. While this may seem achievable in certain sectors, such as electricity, where most energy is generated and consumed domestically, it is far less relevant in globalized markets like oil.
“The oil market is so interconnected globally that even if we produce more than we consume, we’re still susceptible to international supply and demand shocks,” says Fell. For example, geopolitical disruptions, such as Russia’s invasion of Ukraine, have ripple effects on oil prices worldwide, including in the U.S.
Similarly, the technical constraints of refining impact the interconnected nature of oil markets. Many U.S. refineries, particularly on the East Coast, are designed to process specific types of “heavy” crude oil imported from regions like the Middle East. Adapting these facilities to handle exclusively domestic “light” crude would require billions of dollars in investments. This prevents the United States from being truly independent from foreign oil sources.
Natural Gas and Propane: Contributing to Energy Independence
The U.S. energy landscape has transformed over the last 15 years due to advancements in hydraulic fracturing (fracking) and shale drilling. This revolution has significantly increased domestic production of oil, natural gas, and propane, reducing reliance on foreign imports.
The production of propane, a byproduct of natural gas processing and oil refining, has more than doubled in the past decade. Propane is a clean option because it produces no methane, almost no nitrogen oxides, virtually zero particulate matter, and less CO2 than diesel.
According to Dr. Fell, these energy sources are less exposed to global market shocks compared to oil. “There’s a lot more supply on the market now,” he says. “The more sources you have from a greater number of places, particularly places that are not hostile to you, is going to reduce some of the vulnerabilities.”
The domestic abundance of these fuels provides stability, particularly in sectors like electricity generation and heating. The use of natural gas and propane is also growing in industrial processes and increasingly powers transportation fleets.
Climate Solutions and Bridging to Renewables
The increased domestic production of lower carbon energies like natural gas and propane extends beyond helping the United States reduce its dependency on foreign energy imports.
For Drew Bond, an energy expert who served as a Senior Advisor for President George W. Bush at the U.S. Department of Energy, the advent of fracking unlocked the American and global potential for reducing greenhouse gas emissions faster than any other technology. Bond is currently co-founder, president & CEO of C3 Solutions (Conservative Coalition for Climate Solutions).
“If you’re trying to reduce greenhouse gas emissions as fast as possible, we’ve got these resources here and right now. Why don’t we use it as much as we can while we innovate for the future?” Bond said during an interview on the P20 Podcast with Tucker Perkins. “It’s a way for us to ramp down our emissions dramatically, reduce our dependency on foreign oil, and help fuel the world in many cases.”
U.S. Liquefied natural gas (LNG) and propane exports hit record highs in 2024 as natural gas production continues to soar.
“Natural gas and propane have many benefits,” said Bond. “They’re highly energy-intensive in terms of getting a lot of bang for your buck for that molecule.”
