During international turmoil, ARC-ES can bring energy stability to U.S.

This article was originally published at The Empowerment Alliance and is re-published here with permission. 

The decision by President Trump and Israeli Prime Minister Benjamin Netanyahu to launch joint U.S.-Israeli military action against Iran in an effort to achieve regime change within that terror-sponsoring nation will, in the long run, make the world a safer place.

But what it could also do in the short term is destabilize the oil and gas industry, particularly as vessels are hesitant or even prohibited from navigating the Strait of Hormuz. Such uncertainty is one more reason why the U.S. should codify into law the Affordable, Reliable Energy Security Act (ARC-ES), introduced in Congress late last year by Rep. Troy Balderson (R-OH).

Just a couple of days after the strikes on Iran began, “Traders were betting the supply of oil from Iran and elsewhere in the Middle East would slow or grind to a halt,” leading to a spike in global oil prices, as reported by The Associated Press.

But if the U.S. is energy independent, why would it be susceptible to rising oil prices resulting from action in the Middle East? Good question.

During the first Trump administration, thanks to the president’s leadership in unleashing the country’s energy sector, the U.S. became a net exporter of energy in 2019. To this day, we produce more energy than we consume.

That goes for most forms of energy – natural gas, coal, and petroleum products. It represented an amazing turnaround from years past, and while President Biden did everything in his power to constrain traditional energy in favor of “alternatives,” even he couldn’t totally stop the trend of America remaining energy independent.

The U.S. is particularly ahead of the game when it comes to natural gas, in part because of the shale technology that emerged in the last quarter century. Not only is the U.S. a top producer of natural gas, it is also a leading exporter of liquefied natural gas (LNG), which European countries largely depend on despite their lip service to “alternatives” such as wind and solar.

But despite our energy dominance, the U.S. is still somewhat reliant on some crude oil imports. That’s because U.S. oil production through shale fracking results in what is known as “light” oil, while most U.S. refineries are designed to handle “heavy” oil – which means that the U.S. exports much of its “light” oil to other countries and continues to import a steady supply of the kind of “heavy” oil suitable to American refineries.

That’s one big reason the U.S. remains vulnerable to international destabilization of the oil industry, along with the fact that as a globally traded product, oil prices are always at least somewhat impacted by events outside the U.S.

One major way to alleviate the uncertainty of the domestic energy market would be to upgrade U.S. refineries to handle more of the kind of oil we produce, updating our electric grid to be better interconnected and less susceptible to blackouts, and, most importantly, establishing into law the
aforementioned ARC-ES.

ARC-ES would guarantee  “that our most affordable and reliable energy sources, including nuclear and natural gas, remain part of the energy mix – a crucial requirement to guarantee affordable and reliable energy for American households and businesses,” as described in a press release when it
was introduced.

The bill “formally defines three key energy terms for energy regulators: affordable, reliable, and clean. Currently, these terms can be left open to interpretation by the executive branch and can shift from one administration to the next. While President Trump has worked to roll back the previous
administration’s Green New Deal agenda, this legislation would make those reversals legally binding.”

Ideally, the current situation in Iran – not to mention the ongoing circumstances in Venezuela – will inspire members of Congress to take further steps to ensure energy security for America’s households and businesses. Passing ARC-ES into law would help insulate the U.S. from market
fluctuations resulting from actions and events overseas.

Short of Congress passing ARC-ES into law – or perhaps as a precursor to such a vote – President Trump should enact ARC-ES by executive order, an action that would stamp ARC-ES with the force of law throughout the executive branch. It would require federal agencies and officials in the executive branch to treat the act as the law of the land, and it would impact how federal laws and agency rules are written and enforced.

Enacting ARC-ES would have a major impact on all economic aspects of American life. Because of its direct impact on everything from transportation to heating and cooling (in regard to both products and people), energy affordability is the pathway to lifestyle affordability across the board.

Military actions in hotspots around the globe can always have an unpredictable impact on energy pricing and availability. Transitioning ARC-ES from the realm of a great idea to the reality of national policy would go far in protecting U.S. families and businesses from the uncertainties of
international circumstances. It would be the ultimate example of putting America First.

Gary Abernathy is a longtime newspaper editor, reporter and columnist. He was a contributing columnist for the Washington Post from 2017-2023 and a frequent guest analyst across numerous media platforms. He is a contributing opinion columnist for The Empowerment Alliance, which advocates for realistic approaches to energy consumption and environmental conservation.