Call Grows For U.S. Energy Emergency To Shield Economy From Global Oil Shocks

WASHINGTON — For years, American leaders in both parties have emphasized the importance of energy independence. President Biden has pointed to record levels of domestic production. President Trump has repeatedly emphasized that America has achieved energy independence.

Energy independence has become a shared national objective.

But what is the practical benefit of energy independence if American consumers remain fully exposed to global oil price shocks?

We have seen President Trump declare national emergencies where none exist. Here, we are confronted with an economic emergency that clearly does exist. When global instability drives sharp increases in oil prices, those increases ripple throughout the American economy, raising costs for transportation, food, manufacturing, and nearly every household budget.

If energy independence is meaningful, it will protect from precisely this type of disruption. I therefore challenge President Trump to declare a national energy emergency and use executive authority to ensure that the benefits of American energy independence flow first to the American people.

Both President Biden and President Trump have emphasized the importance of American energy independence. But what good is energy independence if the United States remains fully linked to global oil markets in ways that expose American consumers to sudden price spikes caused by overseas conflicts?

Many major oil-producing nations maintain domestic markets in which their own consumers pay significantly less for fuel than buyers on the global market. Their governments recognize that affordable domestic energy supports economic stability, strengthens industry, and protects household purchasing power.

In many oil-exporting countries, consumers pay significantly less for gasoline than Americans pay, even before accounting for the additional taxes applied in the United States.

They maintain domestic market structures designed to protect their economies.

The United States will do the same.

If the United States produces sufficient oil to meet its own domestic needs, American consumers will not be forced to pay prices driven by geopolitical instability occurring thousands of miles away.

Why should the American oil industry receive windfall profits tied to international instability while American families and businesses absorb the resulting inflation?

In January, before the recent military escalation involving Iran, oil traded at approximately $67 per barrel. At that price level, the American oil industry was operating successfully. Companies remained profitable. Domestic production remained strong. Investment continued. Employment remained stable. The industry was fully viable under normal market conditions.

The $67 price level was not artificially imposed. It was established naturally by market forces under relatively stable geopolitical conditions. It represents a real-world benchmark demonstrating that the American oil industry can operate profitably without requiring crisis-driven price increases.

When global conflict drives oil prices significantly higher, the financial gains are concentrated within the oil sector, while the costs spread across the broader economy.

Energy prices affect transportation costs, food prices, manufacturing expenses, and the cost of goods and services throughout the economy. As oil prices rise, inflationary pressure spreads across nearly every sector.

American households feel these effects quickly through higher gasoline prices, higher delivery costs, and rising prices throughout the economy.

Right now, Americans are preparing for another potential inflation spike driven largely by rising energy costs. When oil prices rise sharply, the effects cascade through transportation, agriculture, manufacturing, and retail, pushing prices higher across the entire economy. Much of this inflationary pressure is preventable. Stabilizing domestic oil prices during periods of extraordinary global disruption will act as a powerful anti-inflationary measure that supports economic growth and job creation.

Predictable energy costs allow businesses to plan investments, expand operations, and hire with greater confidence. They help keep supply chains stable and protect household purchasing power. Preventing avoidable inflation strengthens economic resilience and helps sustain steady growth.

Stabilizing domestic oil prices during a declared emergency will not weaken the American energy sector. A temporary stabilization benchmark rooted in a recent market price will preserve industry profitability while reducing the broader economic damage caused by sudden global price spikes. Predictability supports rational investment decisions, stable production planning, and steady employment across the domestic energy sector.

In extraordinary circumstances involving major geopolitical disruption affecting global oil markets, the President has the authority to declare a national emergency to protect the American economy.

Such an emergency order will:

• stabilize the domestic price of oil near $67 per barrel, a price recently demonstrated to support a profitable American oil industry

• limit exports until domestic demand is fully satisfied

• insulate America from the transmission of sudden global price spikes into the American economy

This approach will ensure that extraordinary geopolitical events do not create sudden economic shocks that affect millions of Americans.

Energy independence was achieved through decades of investment, innovation, and technological progress. Its purpose was to strengthen the resilience and stability of the American economy. This executive order will deliver the economic stability that energy independence was meant to provide.

Given the clear economic stakes, President Trump should act with urgency by issuing the executive order and then immediately inviting Canadian Prime Minister Mark Carney to coordinate an insulated North American energy market. Aligning domestic energy stability policies across the United States and Canada will strengthen economic resilience, reduce inflation exposure, and help ensure that North American energy independence benefits North American consumers.

If domestic demand must be met before oil can be exported at world market prices, the oil industry will gain a natural incentive to support conservation and alternative energy development. The more domestic demand is reduced through conservation and alternatives, the more oil and natural gas become available for sale at higher world market prices.

Energy independence will function as an economic stabilizer during periods of international disruption, helping protect purchasing power, support business investment, and sustain steady job growth.

Energy independence will strengthen the entire American economy, not concentrate windfall gains in one sector during periods of international instability.

And in times of global disruption, it will help protect it.