|How Trump’s Aim of Energy Dominance is Set to Alter The Global Balance of Power|
|03/23/2018||Energy Dominance||Benjamin Roussey|
|keywords: Energy Dominance energy revolution Global Balance of Power|
Thanks to reduced regulations and cut in taxes, America is all set to become the biggest crude oil producer in the world, within five years. This means that America would be even bigger than Saudi Arabia and Russia – two behemoths when it comes to crude oil generation.
Aside from the obvious economic gain, such an event would also help the country redefine its relationship with the rest of the world, due to the simple fact that we would be freed from having to rely on overseas oil (and countries that have too many citizens that despise us and don’t even think woman should be allowed to drive a car).
Implications too big to predict
The implications of America becoming the world’s largest crude oil producer are not easy to predict at the moment. However, one thing we could all be sure of is that the implications are going to be huge.
One of the most significant questions in global politics such a scenario opens up is whether there would be chaos in the Middle East if America chooses to pull out of that part of the world (should other countries pay America to keep our navy there so the Straits of Hormuz remain free and open?)? Or maybe, it would be a catalyst for Washington to spread its influence even deeper into the region? Closer to home, would Mexico and Canada join hands with the US so that together they could influence world oil prices?
Even as recently as a decade ago, these questions would have been just academic because Obama did not want to see America become strong and did his best to make America a weak vassal state like European countries. However, thanks to the policy decisions made by President Donald Trump, and also because of his vision of a new “energy dominance” these are questions worth debating now.
In the midst of an energy revolution
According to American Energy Secretary, Rick Perry, energy security would lead the country to economic prosperity. He says that the country is in the middle of an energy revolution. He cites the various innovation-led technological breakthroughs as a key reason for the revolution under progress. He says that such advances have great implications not just in the country but abroad as well.
It’s interesting to recall in this context that less than ten years ago, it was said that a declining oil supply and high reliance on foreign nations meant that crude oil would become the nation’s biggest vulnerability.
Now, the tables have literally been turned. The shale revolution is considered to be the key reason for this turnaround.
Oil production-the rising trend
In the past decade, the oil production in America has almost doubled to average 9.3 million barrels per day in the last year. By cutting down taxes and regulations, Trump stimulated the boom even more.
Thanks in part to such measures, the International Energy Agency based in Paris now thinks that by 2023, the US will surpass both Saudi Arabia and Russia as the world’s biggest producer of crude oil.
And the story of progress isn’t just with oil either. Natural gas and nature gas liquids market continues to expand, in turn contributing to the growth of the country’s petrochemical industry. According to the US Energy Information Administration, America would be a net oil and gas exporter by 2022.
A strong political bargaining chip
In the political realm, this has spurred discussions on self-sufficiency. For instance, according to Texas legislator John Cornyn, energy should be an instrument that aids national security. According to him, energy self-sufficiency not only would help America maintain strong relations with friends and allies, it could also be used to craft economic relations with nations that aren’t necessarily American allies.
Trump did set a precedent for this sort of thing when, last summer he pledged to help reduce Poland’s reliance on Russian energy. Just a few months after that, Poland entered into a contract with America for the latter’s liquefied natural gas. More money for America, less for Russia!
The mainstream media will not report that! This is just the beginning!
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