Infographic: Shale Revolution Strengthens U.S. Energy Security
Ahead of tomorrow’s House subcommittee hearing on the geopolitical benefits of record-shattering U.S. oil and natural gas production, EID has released a new infographic that illustrates how fracking and horizontal drilling have transformed the United States’ fortunes from that of energy scarcity to energy abundance in just a decade’s time.
Thanks to increased domestic production, the United States’ energy security risk — which is the vulnerability to supply disruptions that could be caused by trade conflicts, weather disasters or military conflicts — has been reduced dramatically. As a recent U.S. Chamber of Commerce Global Energy Institute report notes:
“From the high point of 2011, overall U.S. energy security risk plunged in 2016 to the fourth lowest level we have seen — from the record high to the fourth lowest score in just six years. Such a drop in risk is unprecedented in the Index.”
In the meantime, net imports of crude oil and petroleum products have declined 70 percent since 2005, while net natural gas imports have plummeted 103 percent. The United States was an annual net exporter of natural gas last year for the first time in 60 years, and multiple experts believe the United States will become the world’s top LNG exporter by the earlier 2020s. As Jason Bordoff, Director of Columbia University’s Center of Global Energy Policy, recently said,
“The transition of the U.S. to one of the world’s largest gas exporters has significant economic, environmental and geopolitical implications.”
The United States is also expected to emerge as the world’s top crude and petroleum product exporter in 2019, in addition to becoming a net exporter of crude oil by the late 2020s. The United States has led the world in petroleum production six consecutive years since overtaking Russia in 2012, and experts predict the U.S. will overtake Russian crude oil production possibly as soon as this year.
As IHS Markit vice chairman Daniel Yergin recently said:
“[N]ow, instead of OPEC and non-OPEC, you have the big three: Saudi Arabia, you have Russia and you have a country called the United States.”
International Energy Agency Executive Director Fatih Birol has also said:
“The U.S. is becoming the undisputed leader of oil and gas production worldwide.”
And Agnia Grigas, author and nonresident Senior Fellow at the Atlantic Council in Washington, D.C. recently said:
“Let’s make no mistake about it: The United States is now an energy superpower.”
Be sure to check out EID’s new infographic: Shale Revolution Strengthens U.S. Energy Security.