Welcome to Week 4
In the previous week, we learned that shale gas and tight oil has radically shifted global energy markets and redrawn the global energy map.
Energy can also be a source of political leverage or vulnerability for countries, particularly for major powers. Energy has again become one of the most strategic and influential determinants of global security and geopolitics. The outlook for US national security and national strategic calculus has radically shifted. Shale gas and tight oil strengthened the US economy, triggering a resurgence of US manufacturing.
Saudi Arabia’s actions under two years’ low oil prices were out of ordinary when the shale oil surge triggered a global glut. The US has been repositioned vis-à-vis the Middle East and Asia, on one hand, and Russia and China, on the other.
The rise of the Western Hemisphere (Canada, the US, Mexico, and Brazil) as the new center of gravity for oil and gas production has dramatically altered the geopolitics of energy.