US Held Captive by Middle East Oil
The United States' dependence on Middle East oil has been a persistent problem for decades. Despite President Joe Biden's promise to overcome this reliance, the country remains beholden to Iran and Saudi Arabia for much of its oil needs.
A recent Wall Street Journal headline highlights the issue: 'Gulf States are Resigned To Iran Control of Strait (of Hormuz)'. The problem lies in the difference between American production and Middle Eastern crude. While the US produces light, sweet crude from shale formations, the Middle East supplies heavier, higher-sulfur crude.
The US's old refineries were not built to process heavier crude, making it difficult to adapt to this new source of oil. Building new refineries would be costly, with estimates in the billions of dollars, and would also face environmental regulations that could hinder progress. Some argue that investing in new refineries is a bad financial risk as the country shifts towards renewable energy and electric vehicles.
President Donald Trump has suggested tapping into light, sweet crude from the North Sea, citing the UK's prime minister Andy Burnham's promise to take a 'pragmatic approach' to opening up the region. This move could potentially boost the UK economy.