1. The Shale Revolution and the New Geopolitics of Energy
- Author:
- Robert A. Manning
- Publication Date:
- 10-2014
- Content Type:
- Working Paper
- Institution:
- Atlantic Council
- Abstract:
- The shale revolution, the combination of computer-aided horizontal drilling and hydraulic fracturing known as “fracking,” already has had a profound multidimensional impact. After the breakthroughs in information technology (IT) and biotechnology, shale may be the most transformational technological change so far in the twenty-first century. This report argues that shale gas and tight oil has: begun to radically shift global energy markets and redraw the global energy map, forty years after the Arab oil embargo; dramatically shifted the outlook for US energy security and our national strategic calculus; altered geopolitics, making the Western Hemisphere—Canada, the United States, Mexico, Brazil—the new center of gravity for oil and gas production; turned the future of oil debate on its head; debate about whether or not “peak oil” has been reached is over. Now the issue is whether or not we are approaching “peak demand;” has altered market economics to slow the deployment of wind, solar, and nuclear energy and a transition to a post-petroleum economy; yet also reduced US greenhouse gas (GHG) emissions by displacing coal as a source of electricity; strengthened the US economy with cheap gas prices triggering a resurgence in US manufacturing and; potentially repositioned the United States vis-à-vis the Middle East and Asia.
- Political Geography:
- United States, Middle East, Canada, Asia, Brazil, and Mexico