Shock Therapy: Reforming U.S. Energy
In an era of global uncertainty and volatile energy markets, the United States stands at a crossroads. Our nation’s energy policy has long been a patchwork of regulations, subsidies, and political compromises that have stifled innovation and hindered our path to true energy independence. It’s time for a bold new approach: unleashing the power of the free market to secure America’s energy future.
For decades, government intervention in the energy sector has created a landscape of inefficiencies and missed opportunities. Well-intentioned regulations have consistently slowed the development of new energy sources and technologies. Subsidies meant to bolster emerging industries have instead created a culture of dependency and market distortions. This results in higher energy costs for consumers, reduced competitiveness for American businesses, and a dangerous reliance on foreign energy sources. The solution lies not in more government control but in less. By deregulating the energy sector, we can unlock the full potential of American ingenuity and resources.
The current system is filled with red tape that can delay projects for years. For example, the permitting process for new power lines takes an average of 7.5 years, while some can take up to 10 years. By setting clear, consistent standards and reasonable timelines, we can accelerate the development of traditional and renewable energy sources.
Energy growth is also hindered through intrusive energy subsidies. These artificial supports have created an uneven playing field, propping up inefficient technologies and companies while inhibiting upstarts. A genuinely free market in energy would allow the most efficient and cost-effective solutions to rise to the top, benefiting consumers. According to the American Enterprise Institute, subsidies for wind power, solar power, biofuels, and various “energy efficiency” standards distort the market by favoring these technologies, leading to misallocation of capital.
Historical data shows that deregulation and free-market policies can increase economic and job growth. During the Trump administration, the United States became a net energy exporter for the first time in almost 70 years, increasing energy exports to 23.6 quadrillion thermal units and reducing energy imports to their lowest point since 1995. This period also saw record renewable energy production and consumption, with solar-generated electricity doubling and wind production increasing by 48.6% from 2016.
Critics may argue that advancing renewable energy sources is only possible through government intervention. However, the evidence suggests otherwise. In recent years, solar and wind energy costs have plummeted, mainly driven by technological advancements and economies of scale—not government mandates. For instance, the International Energy Agency (IEA) notes that the United States has seen a nearly 60% surge in clean energy investment over the past four years, creating more than 310,000 jobs in the sector. This investment boom supports progress toward energy security, affordability, and decarbonization goals.
A free market approach creates a flexible, adaptive energy sector that can quickly respond to technological advancements, changing consumer preferences, and evolving environmental concerns. This resilience ensures America’s stable, affordable, and secure energy future.
The benefits of this approach extend far beyond the energy sector. Lower energy costs would boost American manufacturing, making our goods more competitive globally. Energy independence would strengthen national security, reducing our vulnerability to foreign supply disruptions and geopolitical pressures. The United States already has made significant strides in energy independence and security. As the world’s largest oil and gas producer, the country plays a vital role in global energy security. Oil and gas exports from the United States have eased pressure on international markets, especially following geopolitical events like Russia’s invasion of Ukraine. Continuing to pursue domestic energy innovations and progress in the private energy sector will only strengthen this independence.
Of course, transitioning to a free market energy policy will require political courage. Entrenched interests will resist change, and short-term disruptions will occur as the market adjusts. But the long-term gains – a more robust, innovative, and independent energy sector – far outweigh these temporary challenges.
It’s time to trust in the power of American innovation and the free market. By reducing government intervention and unleashing the full potential of our energy sector, we can give our economy a much needed dose of shock therapy.
