The Center for a New American Security published a report a couple of weeks back that describes the American hydrocarbons boom as a new variable in United States national security. The report rightly points out that the scale of American production will soon alter the calculus of the global commodity markets and therefore, political relationships between producers and consumers. And with these evolving relationships, the Center wants us to believe that our policymakers will have a key role in the boom managing foreign affairs in such a way as to advance American economic and security interests. The real question is not if that is important, but is our government really up to the task?
Oddly, governmental competence was not cited as an opportunity. They did suggest that they not behave arrogantly with the power and influence that energy will provide. Ultimately, the shale boom will probably be the single greatest economic highlight for America in the past 70 years since the post WW II expansion.
Thanks to the ingenuity and creativity of the industry in developing shale technology, it’s ours to lose at this point.