Energy Dominance: How America Leads in Cutting Emissions and Costs

The guiding principle of this article’s subheading rings especially true in the realm of energy. As the world undergoes a seismic shift in energy markets, the United States is charting a pragmatic path that embraces an “all-of-the-above” energy strategy – leveraging every available resource, from oil and natural gas to renewables and nuclear. This approach, grounded in free-market innovation and sound policy, is paying dividends. The U.S. is outpacing other countries in reducing carbon emissions even as it bolsters energy affordability and economic competitiveness. The choices we make now – to balance growth with sustainability – will define the legacy we leave for our children and grandchildren.

America’s experience shows that economic growth and emissions reduction need not be at odds. Over the past 15 years, U.S. carbon emissions have declined by 879 million metric tons (a 14% drop) – the largest absolute reduction of any country in the world. This remarkable feat was not achieved by stifling markets, but rather by unleashing them. The shale revolution unlocked abundant natural gas, which rapidly displaced coal in power generation. In 2007, coal accounted for over 40% of U.S. electricity, but by 2022 it fell to about 20%, while cleaner natural gas jumped from 20% to 40%. Because natural gas emits less than half the CO₂ of coal per unit of power, this fuel switch delivered a huge cut in emissions even as energy production hit record highs. In fact, the U.S. simultaneously saw the world’s largest increase in energy output over that period, proving that it’s possible to produce more energy while polluting less.

Renewable energy – wind, solar, hydropower – also expanded rapidly, further driving down the carbon intensity of the economy. But it was market-driven innovation in the private sector that made the fastest gains. By letting all viable energy sources compete and complement each other, the U.S. cut emissions far faster than if it had relied on renewables alone. As a result, American emissions have fallen more than those of any other nation in recent history. This free-market emissions progress underscores a key lesson: innovation and incentives can succeed where blunt restrictions might falter.

What enabled America’s emissions drop? Several factors stand out:

• The Shale Revolution: The U.S. embraced gas from shale as a cleaner fuel source, rapidly replacing coal plants with gas-fired generation, which slashed CO₂ output.
• Booming renewables and efficiency: Wind and solar power saw record growth (U.S. renewable energy production rose ~28% from 2013 to 2023), and energy efficiency improved.
• Market-driven investment: Entrepreneurs and businesses invested in new energy solutions, spurred by demand and incentives. The U.S. produced more energy in 2023 than ever before – about 103 quadrillion BTUs – even as coal use hit its lowest level since the 19th century.

Crucially, the U.S. achieved these gains while keeping energy affordable and reliable. Gas prices fell thanks to domestic supply, and the nation became a net energy exporter. Fossil fuels still provide around 84% of U.S. energy consumption. The American strategy seeks to clean up, not eliminate, the fuels that drive our economy. It’s an ethos of addition, not subtraction.

This balanced approach aligns with the Trump Administration’s priorities. Far from picking winners or imposing one-size-fits-all solutions, the Administration prioritized streamlining infrastructure, fast-tracking permits, expanding exports, and removing regulatory roadblocks. Current incentives across renewables, SMRs, hydrogen, and CCS can be viewed as building on this deregulatory foundation. As a result, U.S. oil and gas production has remained robust (crude oil hit record highs of 13.3 million barrels per day in 2024) even as clean power investment soared. This comprehensive strategy is positioning America as both a leading energy producer and a leading emissions reducer – a cornerstone of economic strength and emissions leadership through innovation and economic growth, not regulation.

At the heart of the all-of-the-above approach is a simple premise: energy policy must balance environmental goals with economic needs. Affordable, reliable energy isn’t just a talking point – it’s the foundation of industrial competitiveness and a high standard of living.

• Electricity costs: In 2024, industrial electricity prices averaged about $0.075 per kWh in the U.S. versus €0.199 in the EU – a 2.5x cost gap.
• Natural gas prices: U.S. gas averaged ~$2.50/MMBtu versus EU prices of $12–14/MMBtu in 2024.
• Manufacturing trends: Energy-intensive industries are investing in the U.S. to benefit from lower energy costs and robust infrastructure.

Energy affordability translates into broader economic strength. The U.S. shale revolution alone saved consumers ~$200 billion annually. During global crises, the U.S. acted as an energy buffer. Americans experienced smaller spikes than Europe during recent inflationary waves.

Maintaining this edge means continuous investment across all sources. Renewables are scaling up, oil and gas production is near highs, and nuclear is being revived with next-gen designs and extended operating licenses. This hedges risk and ensures flexibility in response to volatility. Smart investments in R&D and infrastructure bolster the grid and reduce long-run costs.

The global energy transition is not a zero-sum game – it’s about solving practical challenges. America’s approach is working: reducing emissions, producing record energy, and keeping costs down. This is the energy dominance formula.

Free-market forces, enabled by smart policy, have delivered real emissions reductions. No major economy has matched the U.S. in absolute emissions cuts while maintaining growth. We aren’t relying on bans or rationing. Instead, we’re building an energy system that can grow cleaner, stronger, and more affordable.

The stakes are generational. Do we leave behind shortages and stagnation? Or prosperity, energy security, and cleaner air? America’s all-of-the-above strategy – rooted in flexibility, innovation, and abundance – offers a model worth following.

Let’s continue to support an energy future that delivers for families, industry, and the environment. Let’s leave a legacy of strength, resilience, and responsibility.