Why Shale Could Rebalance the Geo-economic Scales with ChinaOctober 18, 2012
As the candidates for president exchange barbs over whose policies will be a stronger bulwark against a rising China, the American oil industry may in the end accidentally provide the best solution. Growing shale resources in North America look poised to strengthen the U.S. economic and diplomatic position with respect to China, just as they have already done with respect to Russia. U.S. shale gas has already played a key role in weakening Russia’s ability to wield an energy weapon over its European customers. By significantly reducing U.S. demand for imported liquefied natural gas (LNG), rising shale gas production has freed up more of the global LNG supply to go to Europe instead of the U.S. As American shale production expands from natural gas to oil, the geopolitical fallout will also mushroom.