Energy dominance is too important to be confined to economics. Instead, it is a strategic imperative.
The Trump administration’s energy dominance agenda is not merely an economic policy but a strategic doctrine. Its objectives are clear: 1) to ensure energy independence through the use of domestic fossil fuels and nuclear power; 2) to influence global energy prices; 3) to provide affordable, reliable energy to Americans and our allies; and 4) to reduce dependence on China’s green energy supply chains. These goals reflect a realist approach to energy policy, grounded in national interest and global leverage.
This marks a sharp departure from the Biden administration’s climate-centric energy strategy. In the name of decarbonization, President Biden restricted oil and gas development on federal lands and imposed sweeping regulations across federal agencies to discourage fossil fuel production and infrastructure. The result was higher energy costs for American households and businesses, with negligible effects on global temperatures either now or projected for the end of the 21st century.
These costs have not been evenly distributed. Lower-income Americans, who spend a larger share of their income on energy and food, have borne the brunt. Small businesses and farmers, heavily reliant on transportation and electricity, have also suffered. Meanwhile, the National Electricity Reliability Corporation warned in its December 2024 report of a fragile grid and elevated blackout risks beginning in 2025, particularly in the central and eastern United States.
The value of energy dominance was underscored during the Israeli-Iranian conflict, when oil prices briefly spiked by $10 per barrel before stabilizing at $65 a barrel. Markets responded not to the conflict itself, but to expectations of future supply — expectations now anchored by North America’s role as the world’s leading oil and gas producer.
President Trump is advancing this agenda through legislative, executive, and regulatory means. The new One Big Beautiful Bill Act terminates tax credits for electric vehicles and residential clean energy in 2025 and phases out wind and solar subsidies by 2028. This legislation strengthens domestic industry and national security by ensuring that the United States relies on its own energy resources rather than those controlled by Beijing.
Executive orders have opened new areas to oil and gas development, prevented premature power plant closures, and revoked California’s authority to set de facto national vehicle emissions standards. States retain the right to impose their own restrictions, but those choosing to develop their energy resources will benefit from lower costs and enhanced competitiveness in energy-intensive manufacturing.
With 273 billion barrels of technically recoverable crude oil and nearly 3,000 trillion cubic feet of natural gas, the United States possesses resources that enable it to both meet domestic demand and support allies abroad. President Trump’s reversal of the natural gas export ban positions the United States to dominate global energy markets and provides a counterweight to authoritarian energy exporters.
Energy dominance also enhances the United States’ geopolitical leverage. In regions plagued by energy poverty, such as sub-Saharan Africa, Latin America, and South Asia, American energy exports can serve as a tool of diplomacy and development. Lower domestic energy prices will also incentivize companies to expand operations in the United States, facilitating our decoupling from China and revitalizing American manufacturing.
The international implications extend beyond trade. By rejecting the net zero orthodoxy that has gripped Western elites, the United States is setting a new standard. As American growth accelerates under a pro-energy regime, other nations will be forced to reconsider their own policies or risk economic decline. The precedent is clear: when President Reagan slashed the top marginal tax rate in 1986, other developed nations followed suit. In 1988 alone, Britain, Canada, Japan, and New Zealand all enacted significant tax cuts to remain competitive.
Europe’s manufacturing base is already eroding under the weight of net zero mandates. Germany, once an industrial powerhouse, is shedding jobs as climate regulations and cheap Chinese EV imports undermine its auto sector. The lesson is stark: environmental policies that raise costs and empower the Chinese Communist Party are not just economically unsound but strategically dangerous.
The question now is whether the European Union and the UK can pivot. If they remain shackled to rigid net zero laws, they risk stagnation, rising unemployment, and growing disparities in living standards compared to a resurgent United States.
Energy dominance is not a slogan—it is a cornerstone of national power. It underpins economic resilience, strengthens alliances, and deters adversaries. In a world where energy is both a commodity and a weapon, the United States cannot afford to cede control to regimes that do not share its values.
By embracing a strategy rooted in abundance, sovereignty, and strategic foresight, the United States is not just powering its economy—it is securing its future and the future of its allies.
About the Author: Diana Furchtgott-Roth
Diana Furchtgott-Roth was the former acting assistant secretary for economic policy at the U.S. Department of the Treasury and now directs the Center for Energy, Climate, and Environment at The Heritage Foundation. She is an adjunct professor of economics at George Washington University and received degrees in economics from Swarthmore College and Oxford University.
Image: Shutterstock/R.bussarin
