Turbines from the Mount Storm Wind Farm stand in the distance behind the Dominion Mount Storm power station August 22, 2022, in Mount Storm, West Virginia. (Chip Somodevilla/Getty Images)

This week Hudson Institute launched its Initiative on American Energy Security, which will examine and promote energy policies that prioritize energy security, economic security, and national security and propose a realistic path to transition to renewable energy sources. Senior Fellow Brigham McCown will lead the initiative. In RealClearEnergy, he addresses why the United States is facing an energy and inflation crisis, and offers recommendations for how to respond. Below are some highlights.

Key Insights

1. Energy Inflation Is a Threat to American Security

Today’s economic and security headwinds have extended into the energy sector, where prices have outpaced inflation while production remains below pre-pandemic levels. Natural gas prices have more than doubled and are expected to increase further as we appropriately move to shore up our European allies with natural gas made necessary by Russia’s weaponization of energy. Similarly, crude oil prices have also dramatically increased, and recent modest declines still leave prices for gasoline, diesel fuel, and other oil products priced well above pre-pandemic levels. The reason for this imbalance is simple: demand has returned, but oil and gas production has not. What has become clear is the continuing requirement for an all-the-above approach to energy markets, as neither fossil fuels nor renewables alone can meet demand today.

2. Focus on the Best Energy Mix

We need to focus on providing the best mix of energy today and into the future. By doing so, the Biden administration can effectively address core inflation, provide reliable energy supplies to our allies, and reduce geopolitical risk and instability to world energy markets exacerbated by Russia’s invasion of Ukraine. This approach requires policymakers to ensure the energy mix is comprised of fuel sources that are available, reliable, and affordable while guaranteeing the resiliency of our energy and transportation infrastructure. Resiliency means providing the right fuel source to where and when it is needed without interruption.

3. Curb Excessive Permitting and Approval Processes

While the mix of renewables will undoubtedly grow over time, today’s high prices directly reflect the absence of sufficient supplies of fossil fuels in our current energy mix. Facilitating higher domestic oil and gas production by curbing excessive permitting and approval processes will address runaway energy costs—especially as we have promised to come to Europe’s rescue by providing them with fossil energy supplies this winter. Meaningful change can occur almost overnight by ordering executive branch agencies to act with a sense of urgency as the current dilatory pace is choking the country’s efficiency and productivity.

Quotes may be edited for clarity and length. 

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