API’ s State of American Energy 2026: The‘ Demand Decade’
At the American Petroleum Institute’ s annual State of American Energy event on Jan. 13, API President and CEO Mike Sommers delivered the following keynote address:
We’ re here today to discuss the future of American energy. But before we do, I’ d like to look back to 2007— nearly two decades ago. At the time, America produced just 5 million barrels of oil per day, and our economy and national security depended heavily on imports— including from Venezuela. That same year, the Chavez regime seized the assets of American energy companies. It was part of a two-decade decline— fueled by state-sponsored theft and corruption that devastated not only their once-thriving energy sector, but also the livelihoods and freedom of the Venezuelan people.
Here in the U. S., we took a different
path. Through competition and innovation, our industry ushered in the shale revolution and propelled America to its status as the world’ s energy superpower. The United States now produces more than 13 million barrels of oil per day— more than any country in the world. That production underpins America’ s energy security and economic strength. America’ s energy leadership is not limited to our borders. U. S. oil and natural gas companies now play an outsized role in meeting global energy demand, reducing the influence of hostile regimes and providing the vital products that have lifted billions out of poverty and enable people all over the world to thrive. No industry has done more to improve human lives.
As the story of Venezuela continues to unfold, two things are clear: Number one: The Venezuelan people deserve better than what they’ ve had for the past two decades. They deserve the opportunity that comes with good governance, a stable economy, and access to reliable, affordable energy.
Number two: American oil and natural gas companies set the global standard for responsible energy development— combining technical excellence, operational experience, and innovation, even in the most challenging environments. But turning reserves into sustained production— whether in Venezuela or anywhere else— requires more than expertise and geology. It requires stable
governance, rule of law, operational security, physical safety, and long-term investment certainty.
This moment underscores a simple truth: Energy strength doesn’ t happen by chance. It is a choice. And that brings us to where we are today. Here in the United States, we’ ve arrived at our own energy inflection point. Multiple forces are converging to drive up energy needs dramatically. New technologies are scaling at extraordinary speed. Supply chains are being rebuilt. The next ten years are shaping up to be the Demand Decade— an era that is going to require
Mike Sommers, API’ s president and CEO
historic amounts of new energy. Whether our nation can meet that demand will define its trajectory.
So, the question before us is simple: Is America’ s energy system prepared to deliver with the speed, scale and reliability that this moment demands? The state of American energy is strong. There is no nation better positioned to lead in this new era. At a moment when the world needs more energy than ever, the United States leads in both oil and natural gas production— and at record levels.
This year also marks 10 years since the first American LNG terminal in the Gulf Coast came online, and today, we are now the world’ s top LNG exporter. Over the past decade, the United States has exported more than 8,000 LNG cargoes, contributing nearly half a trillion dollars to the American economy and supporting 275,000 American jobs. This is the core strength of American energy: We have the resources to deliver affordable, reliable energy here at home and meet growing demand abroad.
But U. S. producers aren’ t just raising the bar for how much energy we produce. We’ re also leading the world in how it’ s produced. American innovation and relentless efficiency have driven down the emissions per barrel of oil and natural gas while output and productivity have climbed. No other country has matched America’ s ability to produce more energy with fewer emissions. It’ s the result of a system built on certainty, stability, and clear rules— where com-
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