How Falling Energy Imports Are Redefining the U.S. Energy Landscape

In 2024, foreign energy made up just 17% of the United States’ total energy supply—the lowest proportion since 1985 and roughly half the 34% peak recorded in 2006 . Bolstered by robust domestic production of oil, natural gas, and renewables, the country has transformed from a major importer to a net exporter of energy for the third year running. This dramatic shift carries far‑reaching implications for national security, economic stability, market behavior, infrastructure development, and environmental ambitions.

Reducing reliance on overseas energy sources—particularly from politically volatile regions—has strengthened America’s energy security. Since 2006, U.S. crude oil and refined product imports have decreased by nearly 39%, falling from approximately 14 million barrels per day (b/d) to 8 million b/d by 2024 . At the same time, Canadian imports have surged, doubling over the same period and positioning Canada as the top foreign supplier since 2014 . This diversification lessens the risk of supply disruptions tied to geopolitical tensions and trade disputes.

With domestic energy output outstripping consumption growth, the U.S. has flipped from a persistent energy trade deficit to a surplus. Total energy imports have stabilized at around 22 quadrillion British thermal units (Btu) since 2021, even as consumption edges upward . Petroleum still constitutes 84% of imports, with natural gas comprising most of the remainder. The shift to net exports has trimmed the trade deficit by tens of billions of dollars annually, buoying job creation in exploration, production, refining, and renewable sectors, while increasing state and federal revenues.

A stronger domestic supply base has partially decoupled U.S. energy prices from international benchmarks. West Texas Intermediate (WTI) crude and Henry Hub natural gas now exhibit greater resilience to global shocks compared to Brent crude and European gas indices. While global supply cuts or geopolitical flare‑ups still reverberate through commodity markets, a deep reserve of home‑grown fuels provides a buffer that softens price volatility for American consumers and industries.

The reorientation away from imports has spurred strategic infrastructure investments. Pipelines such as Trans Mountain in Canada have been expanded to funnel increased Canadian crude to U.S. refineries, particularly in the Midwest and Mountain regions, where nearly all processed crude now originates north of the border . Simultaneously, coastal export terminals have been retrofitted for liquefied natural gas (LNG) and petroleum product shipments, enabling the U.S. to meet growing international demand.

Although declining imports enhance sovereignty, they coincide with record highs in domestic oil and gas production. Renewable sources—particularly wind and solar—also reached unprecedented output levels in 2024, but fossil fuels remain dominant . Striking a balance between energy abundance and climate objectives poses a policy challenge: encouraging carbon‑reducing technologies, investing in carbon capture and storage, and accelerating clean‑energy build‑outs will be essential to align energy independence with emission‑reduction targets.

As import shares plateau near historic lows, the focus must shift from simply producing more to producing smarter. Enhancing grid flexibility, deploying advanced drilling techniques, and fostering innovation in battery storage and hydrogen could underpin sustained growth while mitigating environmental impacts. Meanwhile, maintaining open trade relationships for energy exports will ensure market liquidity and diplomatic leverage.

In sum, the U.S. transition from import dependence to export dominance marks a pivotal transformation in its energy narrative. While the economic and security benefits are tangible, the path forward demands cohesive strategies that marry energy abundance with environmental stewardship—ensuring that America’s energy future is not only powerful, but also sustainable.