(WO) — Decades of investment in U.S. oil and natural gas production, refining and infrastructure have positioned the United States to play a stabilizing role during recent global energy market disruptions, according to a new analysis released by the American Petroleum Institute (API).
The industry group said the current period of geopolitical uncertainty—including tight global inventories and ongoing risks to shipping through the Strait of Hormuz—has underscored the importance of sustained domestic energy development. While markets remain volatile, API argued that record U.S. crude production and refining capacity have helped cushion global supply disruptions.
According to API, the United States now produces nearly 14 MMbpd of crude oil, making it the world’s largest oil producer and the largest source of new global oil supply. The organization said the upstream industry invests approximately $150 billion annually in oil and natural gas production, with additional investment directed toward pipelines, refineries, export terminals and other energy infrastructure.
API said those long-term investments have fundamentally reshaped the country’s position in global energy markets. As an example, the group noted that more than one-third of crude oil produced from federal offshore waters in 2025 originated from leases issued in the 1990s, illustrating the decades-long timeline often required to bring major projects into production. It also cited the Shenandoah development in the U.S. Gulf, discovered in 2009 and brought onstream in 2025, as another example of the industry’s long investment cycle.
The report also emphasized that production growth alone is insufficient without adequate infrastructure. API pointed to negative natural gas prices at the Permian Basin’s Waha hub during much of the first half of 2026 as evidence that pipeline constraints can limit market access despite strong demand. A pipeline expansion that entered service in June helped relieve some of those bottlenecks after more than four years of development.
Looking ahead, API said maintaining the country’s role as a reliable energy supplier will require continued investment supported by stable leasing opportunities, permitting reforms and expanded energy infrastructure. The group argued that long-term policy certainty is essential to encourage capital investment and ensure future supplies can reach domestic and international markets.
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