America is Now a Natural Gas Powerhouse: It Helps Trade Negotiations
image credit: Natural Gas Powerhouse
- Jun 21, 2019 4:30 pm GMT
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The US has risen to the top ranking among oil and gas producers of the world and now it is a fast-growing exporter as well.
This has put energy at the center of US trade negotiations. This not only works as a strategic lever for trade balancing but also as a way to reduce America’s crippling dependence on other nations for oil and gas.
Top Spot in Energy Production and Export
The International Energy Agency recently said that the US as an oil exporter would, in the next three years, surpass Russia and also compete with Saudi Arabia for a spot in the top five countries globally as its oil output is growing consistently.
This progress along with the expected growth in exports of liquefied natural gas will turn the US into the world’s largest exporter of energy.
Role of Energy in Trade Negotiations
Trade negotiations between Beijing and Washington focus significantly on increased sales of US energy. China imports LNG too and will soon probably increase its purchases even more from the United States.
Dan Yergin, IHS Markit vice chairman, said that US export of energy is both a positive and a source of friction in trade talks with China. It also plays a role in the European gas market equation.
Although he is not personally involved in trade negotiations, Energy Secretary Rick Perry acknowledged that growth in US production is in fact a lever in trade.
He explained that it is part of the mix. It may not always be an easy issue to discuss during trade talks but it is certainly an asset. He believes that the entire gamut of energy export operations has turned the US into a powerhouse and a leader in the energy sector.
The brilliant Perry (someone who does not have the political correct disease that leftists have) believes that today the US is completely self-reliant in terms of its energy requirements compared to earlier times when it was dependent on oil imports.
He says that the recent shale boom and energy revolution in the country ensures that the US never has to worry about being held hostage by other nations for fuel.
According to Fatih Birol, executive director of the International Energy Agency, rising US oil and gas production and export is great for countries who are consumers.
He claims that the second phase of the shale revolution that has recently commenced will make the US the topmost energy exporter in the world and in the next five years, 75 percent of world LNG exports will come from the US.