The US Strategic Petroleum Reserve (SPR) was not refilled when prices were low, a clear strategic error. It was then misused not for a true national emergency, but to lower gasoline prices before midterm elections. This cynical move depleted reserves and physically degraded the facility's capabilities.
While options like releasing strategic reserves and tapping Saudi spare capacity exist, they are temporary stopgaps. These measures fall short of replacing the 20 million barrels per day—over 20% of global production—that flow through the Strait of Hormuz, making its security the paramount issue.
The primary threat to securing oil tankers is no longer just mines or fixed missile sites. It is the asymmetric threat of cheap, long-range drones that can be launched from the back of a truck, making them incredibly difficult and costly to defend against with traditional military systems.
While the US considers unstable nations like Venezuela for oil, it neglects Canada—a friendly neighbor with vast, untapped oil sands and other resources. A US-Canada energy task force could quickly boost supply via rail, offering a more reliable solution than politically fraught alternatives.
The Jones Act, a protectionist law, mandates that only US-built and crewed ships can transport goods between US ports. This creates bizarre inefficiencies and high costs. Suspending it would immediately improve maritime transport efficiency and lower prices, especially for states like California.
The US cannot secure the Strait of Hormuz alone. The solution is a US-led military convoy that includes allies like Japan and South Korea, and even unconventional partners like China, who are heavily dependent on the oil route. This international presence creates a stronger deterrent and shares the burden.
A US oil export ban seems logical during a crisis, but it's counterproductive. American refineries are primarily configured for heavier crude oil, while the US shale revolution produces lighter crude that must be exported. Not all oil is fungible, making global trade essential for domestic refining.