Energy Security Starts at Home, and Your Energy Dominance Is Exhibited Through Your Exports – How is the U.S. Shipbuilding rolling out?

In an era of global energy volatility—exemplified by the 2026 Strait of Hormuz crisis and surging U.S. oil and LNG exports—true energy security isn’t just about drilling and producing at home. It’s about controlling the vessels that carry American energy to the world. President Donald J. Trump’s administration has made this crystal clear: Energy dominance requires American-made ships. From LNG carriers hauling U.S. natural gas to Europe and Asia to tankers moving crude and refined products, and a robust military fleet securing sea lanes, shipbuilding is the backbone of exporting American energy without foreign reliance.

Less than 15 months into the second Trump term, the administration has moved decisively. On April 9, 2025, President Trump signed Executive Order 14269, “Restoring America’s Maritime Dominance,” directing a comprehensive Maritime Action Plan (MAP). Released in February 2026, the MAP outlines a whole-of-government strategy to rebuild U.S. shipyards, expand the merchant fleet, and secure the maritime industrial base—directly supporting energy exports.

Commercial Shipbuilding: Momentum on American-Made Tankers and Cargo Ships

U.S. shipyards historically built fewer than 1% of global commercial vessels, leaving energy exporters vulnerable to foreign-flagged ships and supply chain risks. The Trump administration has targeted this head-on with over $150 billion in secured investments, tax incentives, loan guarantees (via MARAD’s Title XI program), and proposed fees on foreign-built vessels entering U.S. ports.

A standout success is Hanwha Philly Shipyard (formerly Philly Shipyard). Acquired and modernized with South Korean partnership under the “Make American Shipbuilding Great Again” push:In July 2025, Hanwha Shipping ordered the first U.S.-built, export-ready LNG carrier in nearly 50 years—with a second following in August. Deliveries are slated for ~2028, using a joint-build model to bridge current capacity gaps while technology transfers build domestic expertise.

August 2025 brought the largest U.S. commercial vessel order in over two decades: 10 medium-range (MR) oil and chemical tankers. The first is expected in 2029. These vessels directly support U.S. energy exports by providing Jones Act-compliant and international-trade-capable tonnage for crude, products, and chemicals.

A $5 billion infrastructure upgrade at the yard aims to ramp capacity from ~1 ship/year to up to 20, creating thousands of jobs and positioning it for both commercial energy carriers and potential Navy work. Other yards have seen activity in containerships and support vessels tied to domestic energy supply chains (e.g., Matson’s Aloha Class and MARAD training ships).

Deregulation under E.O. 14192 has already delivered 19 USCG actions in FY2025, streamlining compliance and easing burdens on builders. The MAP proposes Maritime Prosperity Zones, multiyear contracting, and a Strategic Commercial Fleet to guarantee demand, critical for scaling tanker production for LNG and oil exports.

Military Ship Production: Expanding the Fleet to Protect Energy Sea Lanes

Energy dominance also demands naval strength to safeguard export routes. The administration’s FY2026 budget funded 19 new ships. The FY2027 request escalates dramatically: $65.8 billion for 34 vessels (18 battle-force ships + 16 non-battle-force/auxiliary/logistics ships), the largest surge in decades. This includes recapitalizing the Ready Reserve Force and noncombat logistics vessels essential for wartime energy resupply.

The “Golden Fleet” initiative—endorsed by President Trump—emphasizes surge capacity, with public shipyard modernization and emerging tech like modular construction. Coast Guard cutters and support vessels are advancing (e.g., keel-layings at Austal USA). These assets ensure U.S. energy shipments aren’t disrupted by adversaries.

Hold-Ups and Slowdowns: The Path Forward for Energy Dominance

Progress is real, but challenges remain. U.S. yards face labor shortages, high costs (U.S. vessels can cost 4–5x foreign equivalents), long build times, and limited capacity (only ~8 active large-ship yards). Historical stop-start procurement has deterred investment. The MAP acknowledges these, noting supply-chain vulnerabilities and workforce gaps.

Temporary Jones Act waivers (60 days in March 2026, with extensions under consideration amid the Iran/Hormuz crisis) have allowed foreign tankers to move domestic oil/gas for short-term relief. While necessary for immediate energy flows and export surges, critics (including shipbuilders) argue they risk chilling long-term investment in U.S. yards. Waivers do not address the core need: more American-built tankers.

We need to REPEAL the Jones Act and buy tankers in the short run, as building them on US soil will take too long. 

The Jones Act should be repealed, but it is a typical piece of legislation that supports a handful of jobs through well-paid political lobbyists, and if it were repealed, we would have a lot more jobs. But we can’t even seem to get a voter ID requirement passed, which is about as basic as it gets.

What needs to happen to accelerate this critical pillar of energy dominance?

Pass complementary legislation quickly: The SHIPS for America Act, Building Ships in America Act, and the MAP’s proposed legislative package (expected post-FY2027 budget) for sustained subsidies, cargo preference expansions, and a Maritime Security Trust Fund.
Deliver predictable demand: Multiyear/multi-vessel contracts and guaranteed cargo for U.S.-flag/energy vessels.
Scale workforce and infrastructure: Expand mariner training, apprenticeships, and Maritime Prosperity Zones; complete yard modernizations (drydocks, cranes).
Enforce and incentivize: Fully implement foreign-vessel fees and land-port taxes to fund domestic builds; prioritize U.S.-built LNG/oil tankers in export policies.
Allied partnerships with safeguards: Leverage technology transfers (as with Hanwha) while ensuring American control and jobs.

The Trump administration’s actions signal that a Maritime Golden Age is underway. American energy producers can export with confidence when U.S.-built tankers, cargo ships, and a dominant Navy fleet carry the load. Energy security truly starts at home—and dominance is measured in the ships flying the Stars and Stripes.

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