For 250 years, America’s story has been one of innovation and ingenuity – and squarely at the center of that narrative is our country’s rich energy legacy. From lighting homes with the nation’s first natural gas wells to powering today’s AI revolution, each generation of Americans have found new ways to harness domestic energy to make the country stronger and more prosperous.
At the same time, a strong domestic energy industry has always been closely linked to national security and energy independence, providing essential energy for homes, businesses, and our global allies. Heading into this year’s midterms, energy is at the forefront of the conversation, reiterating once again the importance of policies that prioritize unleashing America’s vast resources, rather than stifling them.
And, as we celebrate 250 years, we also recognize the industry partners that have helped the U.S. achieve energy abundance. Take the Independent Petroleum Association of America (IPAA), who are approaching their centennial; the group, which just announced a consolidation with DEPA, have been key advocates for the companies that deliver strong energy production.
With the Right Policies, There Can Be a Bright Future for the U.S. Energy Industry
America’s energy leadership doesn’t happen by accident. It is built through technological innovation, private investment, and importantly, smart policies that allow American producers to flourish.
Recent policy actions by the Trump administration, including restarting LNG export permitting and rescinding the offshore leasing ban, have helped the United States continue to provide reliable energy for its allies and bolster geopolitical strength, while reflecting renewed recognition that American energy remains a strategic national asset.
One of the key industry concerns for the Trump Administration that still requires additional action deals with the cumbersome permitting process for building large scale energy infrastructure. Members of the Natural Gas Council, including API and IPAA, along with NOIA, AXPC, and others have all expressed a need to reform the U.S. permitting system. The job isn’t finished, as Congress continues to debate comprehensive reform, with bipartisan agreement regarding the urgency of the issue.
From pipelines to power plants and export terminals, America’s energy legacy was made possible because innovators were allowed to build – and preserving that advantage will require a permitting system that can keep pace with today’s energy demands.
Now, with the United States celebrating its 250th anniversary this week, let’s take a look back at the rich energy history of the country, and where its domestic energy industry is heading next.
Building Domestic Strength First
The first commercially viable natural gas well in the United States was in Fredonia, New York, all the way back in 1825. A few decades later in 1859, the first commercially viable oil well, Drake Well, was drilled in Titusville, Pennsylvania. The Drake Well launched America’s modern oil industry and helped fuel the country’s industrial expansion, transforming manufacturing, transportation, and economic growth for generations.
One of the energy industry’s biggest moments followed years of research and development from Mitchell Energy, which established the first high-volume, “slickwater” hydraulic fracture in the Barnett Shale in 1997. This new technology was pivotal for launching our country’s modern energy industry which lowered costs, reduced emissions, and strengthened countless manufacturing processes.
Fracking wasn’t new in 1997 though. In fact, the first experimental hydraulic fracturing took place in southwest Kansas in 1947, while the first commercial hydraulic fracturing treatments took place in 1949. Two wells were fractured simultaneously: one near Duncan in Stephens County, Oklahoma, and another in Archer County, Texas – both areas that have remained cornerstones of the American energy industry.
The next big moment came in 2004, when Range Resources completed the Renz #1 well in Mt. Pleasant Township, Pennsylvania. This well introduced the Marcellus Shale to the world – one of the largest and most valued natural gas fields ever utilized. The moment was a gamechanger for the Commonwealth and the United States, with the basin today supporting hundreds of thousands of jobs, contributing billions in economic activity, and generating billons in tax revenues.
The United States Enters the Global Market
After strengthening its domestic energy offerings, the United States then could look outward to become the global energy powerhouse we are today, providing reliable and affordable energy to its global allies.
In 2016, the first liquified natural gas (LNG) export shipment from the contiguous Lower 48 states was exported from the United States, headed for Brazil. Since then, the terminal, Sabine Pass, has shipped over 3,300 cargoes worldwide, serving as just one of the numerous terminals that underpins the United States’ leadership in LNG exportation. In just a decade, the United States has grown to be world’s largest LNG exporter, helping to meet international energy demand and showcase American strength on a world stage.
In 2015, the U.S. energy industry was given the green light to continue to bolster its global dominance and further support global energy demand when the U.S. crude oil export ban was officially lifted by Congress. By repealing the 1975 restrictions, U.S. crude could be sold globally.
By 2020, the United States had become a net exporter of petroleum for the first time since 1949, strengthening its national security by reducing its dependence on foreign countries for essential energy. As Energy in Depth has previously analyzed, talks during the Biden administration of reinstating the crude oil export ban emphasized the importance of the U.S. energy export industry – both at home and abroad.
Powering the Future
Just as American energy has powered railroads, automobiles and the internet for decades, it is now powering the next iteration of the technological revolution.
The need for infrastructure buildout is underpinned by growing demand for digital infrastructure – and the associated increase in electricity demand. As they have for decades, the U.S. energy industry is working to develop innovative ways to meet this unprecedented demand. U.S. natural gas production sits at the center of the emerging industry, with significant planned investment and future capacity growth, because natural gas is uniquely positioned to meet this challenge.
On top of raising the production of reliable and affordable energy like natural gas, American energy companies continue to produce cleaner and more reliable than ever before. The Shale Revolution helped reduce CO₂ emissions more than any other source, thanks to enabling a switch from coal to natural gas.
And today, companies continue to innovate, such as with technologies like carbon capture and storage (CCS) to fuel the booming AI industry, while concurrently working to lower emissions. What’s more, the industry has developed advanced ways to reduce environmental footprints, including recycling produced water and reducing flare volumes.
Bottom Line: The United States’ economic strength and national security has long been underpinned by its strong domestic energy industry. With American producers pursuing innovation and advancement since the 1800s, the next 250 years of America’s story will once again depend on the same qualities that built energy leadership in the first place: American entrepreneurism, American work-ethic, and American excellence that responsibly develops our nation’s natural resources to bring a better quality of life for millions of people across the globe.
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