Trump's energy adviser says Gulf must build new oil routes to bypass Strait of Hormuz

As the second year of a war that has transformed the global energy landscape, the individual guiding the United States' energy strategy has urged Gulf nations to construct alternate oil routes to circumvent the Strait of Hormuz. Jarrod Agen, head of the Energy Dominance Council, argues that the conflict in the Middle East has shifted from a focus on supply to the routes through which oil is transported.

Speaking at the UN General Assembly, Agen emphasized the need for redundancy, with multiple routes and corridors established to bypass the strait or travel through Turkey or the Mediterranean. He credited President Trump with having the authority to unite stakeholders and secure their agreement.

Refining capacity in the United States is currently at 100% utilization, and the country now faces a strategic challenge due to the war. Russia's refining capacity has been reduced by 30-40%, while China has room for growth. The strategic implications of the situation extend beyond economics, affecting national security and foreign policy. Agen highlighted the importance of energy security, stating that if a country lacks a dependable energy supply, it affects its economy, national security, and foreign policy.

While acknowledging the substantial infrastructure investment required, Agen reframed the discussion around energy security and its value. He emphasized the administration's focus on the Western Hemisphere as the center of global energy security, including Venezuela, and compared the recent deal with Venezuela to the largest oil agreement in US history. However, he dismissed the notion of a transition away from fossil fuels, advocating for continued investment in natural gas and nuclear energy.