The episode taught valuable lessons for the current crisis. The first and most immediate step is to prioritize North American oil production over imports from less desirable suppliers. Permian Basin shale oil can be brought online quickly to substitute for the absence of Russian oil on global markets. Alongside the obvious security and economic benefits to the West, the oil-and-gas industry has the opportunity to ensure the Permian is the cleanest hydrocarbon source in the world. To do this, producers should set aggressive emission-reduction targets and drive methane emissions as close to zero as possible with measuring and monitoring verified by third parties.
Further, shale oil and gas production represents arguably the most transition-aligned oil and gas production today. Because of the indeterminate demand for fossil fuels in the coming decades and beyond, it makes economic sense to encourage quick-turnaround, high-return oil-and-gas projects while actively discouraging long-duration, capital-intensive projects with uncertain futures. This is an opportunity for U.S. oil and gas companies to replenish their balance sheets while preparing their own unique strategies to drive value over the coming