![]() ![]() Energy abundance is the security blanket that U.S. If it seems like there are a lot of moving parts, that’s because the recent global economic backdrop has remained touch-and-go. economic power via sanctions, which has helped enable OPEC nations to balance the market for example by restricting Iranian oil supplies. energy revolution, with respective large capital investments requiring specialized steel products and supply chains being integrated across North America.Ī fourth flavor of trade-related issues is the projection of U.S. consumers and the economy as global headwinds persist, particularly with potential China tariff escalation, which many hope will be postponed.īeyond China, trade restrictions under Section 232 that affect steel and aluminum imports and importantly the ratification of USMCA as a replacement for NAFTA are equally vital to the U.S. Important questions going forward concern how to sustain the momentum for U.S. household energy spending in recent years compared with 2010, before the energy revolution accelerated, adjusted for price inflation ( EIA). household, the bottom line matters: these three trends have meant Americans have more dollars available to spend on other things – to the tune of more than $200 billion nationwide when we compare U.S. technology leadership in energy development.Īnd to bring this home for the typical U.S. ![]() ![]() This hat trick has been made possible only because the supply growth that led to energy interdependence has endured based on U.S. experienced:ġ) Record monthly records crude oil and natural gas production Ģ) Record domestic petroleum demand for October and, Keeping our eye on the big picture, three things stand out among recent trends as the U.S. energy exports could expand without China willing to buy. However, since China is the world’s top growth market for oil and natural gas imports, there could be limits to how much U.S. At least this has been the case for the past couple of years. That is, if China elects to buy oil from Iran, U.S. energy trade has been driven by the fact that global oil and refined products, and to a lesser extent natural gas, can be fungible commodities. natural gas, oil and refined products going to China declined to negligible amounts in 2019 as a result of the trade war. petroleum trade position was positively transformed despite less buying of our petroleum exports by China. Another way to phrase it is “energy interdependence,” since achieving the milestone has been marked by export-led growth of oil and natural gas. The Trump Administration refers to it as energy dominance. refining, petrochemicals and manufacturing, which have weathered the storm of U.S. It embodies a slew of economic benefits, including lower energy prices – also those due to supply growth – rejuvenated investment in resource development, processing and transportation. Energy Information Administration (EIA) recently confirmed ( see here and here) what API indicated in its Monthly Statistical Report (MSR) for September: For the first time since the 1950s, the United States is now a net exporter of energy in total.Īchieving this milestone is important for America. ![]()
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