Disruptions tied to the Strait of Hormuz are the latest reminder that energy security and national security are deeply connected, and that stable, abundant American energy production plays a critical role in protecting consumers and supporting global markets.

ADNOC CEO Sultan Al Jaber warned this week that disruptions in the Strait of Hormuz highlight the need for greater investment in “global energy resilience,” underscoring how quickly geopolitical conflict can disrupt energy markets worldwide.

The Strait of Hormuz is one of the world’s most important energy chokepoints. Roughly one-fifth of global LNG trade and a significant share of global oil shipments pass through the narrow waterway between Iran and Oman. When ship traffic through the strait is threatened, the effects are felt almost immediately in energy markets around the world.

Earlier this month, Chevron CEO Mike Wirth warned that “we will start to see physical shortages,” as the closure of the Strait of Hormuz tightens global supply chains and reinforces the importance of dependable producing regions.

Fortunately, the United States is better positioned than any other country because of its strong domestic energy industry. With record oil and natural gas production, the United States is not just insulated from global volatility, it is actively helping anchor global supply. This position of production strength has lowered costs for consumers, strengthened the economy, and provided allies with dependable supplies during periods of international uncertainty.

U.S. Producers Are Responding

American energy companies are already demonstrating how quickly domestic production can respond when global markets tighten. That responsiveness is one of the clearest advantages of a strong domestic energy sector: when global supplies are threatened, U.S. producers can bring additional barrels and molecules to market rather than leaving consumers more exposed to price spikes.

A recent survey by the Federal Reserve Bank of Dallas found that most oil and gas executives expect U.S. oil production to increase by up to 250,000 barrels per day this year in response to the Iran conflict, with even larger gains anticipated in 2027.

Source: Federal Reserve Bank of Dallas

Several companies have already announced plans to increase production and processing capacity, highlighting how domestic energy development strengthens supply security during periods of geopolitical instability:

• Diamondback Energy raised its 2026 production guidance by three percent to more than 520,000 barrels per day, with CEO Kaes Van’t Hof describing the conflict as a “catalyst to begin to grow production.”
• Continental Resources said it is increasing capital spending and output.
• Antero Resources expects 2026 production to be nearly 20 percent above 2025 levels.
• Chevron reported production above 2 million barrels of oil equivalent per day for the third consecutive quarter, supported by growth in the Gulf of America and the Permian Basin.
• Phillips 66 also increased its refining segment’s net crude throughput capacity by 45,000 barrels per day at the start of 2026, expanding total refinery processing capacity.
• Occidental Petroleum CEO Vicki Hollub said the oil industry would need sustained crude prices around $70 per barrel to support production growth, while noting U.S. output can be maintained at current levels in the $60–$65 range.
• Ovintiv reported strong operational momentum in 2026, while continuing to expand production capacity across its core North American shale portfolio.

Together, these announcements demonstrate how domestic production, refining, and export capacity work together to strengthen energy security when global markets become more volatile.

Lessons from Ukraine and Record U.S. Production

This is not the first time geopolitical conflict has underscored the importance of domestic energy production.

Following Russia’s invasion of Ukraine, U.S. LNG exports helped European allies replace lost Russian supplies and avoid deeper shortages. In 2022, U.S. LNG exports to Europe exceeded the volume of Russian pipeline gas for the first time, a historic shift that underscored how American natural gas can strengthen both economic and national security.

At home, natural gas provides nearly 40 percent of U.S. electricity generation and continues to deliver the dispatchable, around-the-clock power that modern infrastructure requires. Abroad, U.S. LNG exports averaged 14.7 billion cubic feet per day in 2025, with the United States now supplying more than half of Europe’s LNG imports.

Total U.S. energy production reached a record 107 quadrillion British thermal units in 2025, while natural gas production climbed to an all-time high of 39 trillion cubic feet. With total energy production and natural gas output both reaching record highs in 2025, the United States is better positioned than any other country to lead during periods of global disruption.

Infrastructure Turns Resources into Security

Production is only part of the equation. Pipelines, processing facilities, LNG export terminals, storage sites, and refineries connect America’s vast resource base to consumers at home and allies abroad.

Without this infrastructure, abundant supplies cannot deliver their full economic and strategic value. Domestic natural gas production has made it possible to liquefy, transport, and export American energy while helping keep prices lower for U.S. consumers.

As the U.S. Chamber’s Global Energy Institute’s Christopher Guith recently noted:

“If we want to make the next Hormuz-sized disruption less damaging, we need to build redundancy into the global LNG system.”

That includes continued investment in pipelines, LNG export terminals, storage capacity, and the infrastructure needed to move reliable American energy to global markets.

The shale revolution showed that investing in energy infrastructure lowers costs, strengthens supply chains, and enhances U.S. influence in global energy markets. Recent analysis from the Energy Institute at Haas estimates that shale gas has generated between $4.5 trillion and $5.3 trillion in cumulative savings for U.S. consumers since 2007, or roughly $237 billion to $276 billion per year.

Those benefits were made possible by the combination of abundant domestic resources and the infrastructure needed to deliver them to power plants, manufacturers, households, and export markets. Maintaining that advantage will require continued investment across the energy value chain, along with permitting processes that allow critical infrastructure projects to move forward in a timely manner.

Bottom Line: The latest conflict involving Iran is another reminder that energy security starts at home. When global energy disruptions come, it is imperative that the United States and its allies have the production capacity and infrastructure needed to respond accordingly. America’s oil and natural gas resources have consistently lowered costs for consumers, strengthened manufacturing, and provided reliable energy during times of crisis.

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