Written by Angelos Delivorias.
The energy system is a cornerstone of the United States (US) economy and competitiveness. The country’s energy mix in 2022 was well-diversified, consisting of two thirds natural gas and oil, with the rest almost equal proportions of coal, nuclear and renewables. By using its vast reserves in fossil fuels and applying new extraction technologies, the US has managed to increase its fossil fuel production significantly over the past 10 years and, since 2019, it has become a net energy exporter for the first time in decades.
US fossil fuel exports have increased further since Russia’s full-scale invasion of Ukraine, at a time when the EU has looked to close the gap created by its ending imports from Russia. The US is also the world’s largest producer of nuclear power, accounting for about 30 % of worldwide generation of nuclear electricity.
During the Biden administration, the EU and the US were close allies and shared values on energy and the importance of energy transition. In this context, they cooperated through several channels and forums. At the same time, however, their initiatives (the Inflation Reduction Act in the US, the European Green Deal in the EU) showed that, while the goal (decarbonisation and generation of energy from renewable sources) remained the same, the visions and means to achieve them differed between the US and the EU. This created the conditions for both cooperation and rivalry.
Since then, the new Trump administration has shown that it intends to conduct a more aggressive, fossil fuel-based energy policy. This could reduce cooperation and create tensions in energy relations between the partners, as was the case during President Trump’s previous term.
Read the complete briefing on ‘EU energy partnerships: United States‘ in the Think Tank pages of the European Parliament.
US share of global production and exports of natural gas and crude oil
EU imports of crude oil, including from the US
EU imports of natural gas, including from the US
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