Could a Buyers’ Coalition End the Global Energy Crisis? A Radical Proposal Emerges

The world is grappling with the most severe energy crisis in modern history, with oil exports expected to drop by 1.5 million barrels per day by mid-2026. Countries like Pakistan, Indonesia, and the Philippines face imminent fuel shortages, while Europe has only weeks of jet fuel left, threatening flight cancellations and soaring fares.

Amid this turmoil, economists propose a bold shift away from decades of free-market oil trading. They suggest the U.S. could spearhead a buyers’ coalition to cap oil prices and prevent wealthier nations from outbidding poorer ones, potentially easing global shortages and inflation.

A Radical Shift: From OPEC to a Buyers’ Coalition

University of Massachusetts Amherst economists Gregor Semieniuk and Isabella Weber envision a reverse OPEC—a coalition of oil-importing countries banding together to control purchase prices rather than production volumes. This buyers’ club would set a price ceiling to curb bidding wars that drive prices beyond reach for poorer nations, offering a new tool to combat inflation and shortages.

This concept flips the traditional oil market dynamic established over the past 65 years, where OPEC producers have dictated supply to influence prices. The International Energy Agency (IEA), founded in 1974 as a counterbalance to OPEC, already coordinates strategic oil reserve releases, but adding a price ceiling would mark a significant escalation in collective buyer intervention.

Why Free Market Principles May No Longer Work

Since the 1980s, oil markets have operated under free-market principles, with prices set by supply and demand. Proponents argue this system encourages efficient production and distribution. However, ongoing geopolitical tensions, such as the restricted Strait of Hormuz, threaten supply stability and exacerbate inequalities, as wealthier countries outbid poorer ones for limited resources.

“Maybe the market shouldn’t be the only mechanism by which we respond to this unprecedented crisis. Maybe governments should have a more active say in that.”—Gregor Semieniuk, Economist

The U.S. Role: A Potential Leader in Global Oil Market Intervention

As a net oil exporter with a record energy surplus, the U.S. is uniquely positioned to lead a buyers’ coalition. With an annualized energy trade surplus nearing $100 billion, the U.S. could leverage its market power to stabilize prices and ensure fairer distribution globally.

Additionally, proposals for excess profit taxes on oil companies, like Senator Bernie Sanders’ 95% windfall tax, aim to curb excessive profits during crises and redirect funds to alleviate global suffering. However, past efforts, such as the EU’s windfall tax, have raised less revenue than anticipated, highlighting the complexity of such measures.

Global Implications and the Path Forward

The current energy crisis reflects a broader shift toward zero-sum thinking in global trade, where wealthier nations prioritize their own interests at the expense of poorer countries. This dynamic mirrors vaccine distribution during the pandemic and natural gas shortages following geopolitical conflicts.

Economists warn that without coordinated intervention, the crisis will deepen, disproportionately harming vulnerable nations. The question remains whether consuming countries, led by the U.S., have the political will to challenge the status quo and implement creative solutions to ease global suffering.

“I think now maybe is the time to think about creative solutions and ways to alleviate suffering for ordinary people.”—Gregor Semieniuk, Economist