The U.S. Shale Gas Revolution and its Implications for International Energy Policy

Four years ago, gas prices in the United States approached record highs at nearly $4 per gallon, all the while politicians argued about the causes and solutions. President Obama tried to calm the oil and financial markets, announcing on March 30, 2011 a goal that has tantalized presidents since Richard Nixon: to attain independence from foreign energy sources by reducing oil imports by more than one-third by 2025, a milestone that could reconfigure the U.S’ economy, geopolitics, and more. The U.S.’ dependence on foreign petroleum is widely considered a national security risk due to the volatility of oil and gas prices, supply-demand imbalances, and threats of sudden and more severe supply disruptions. For four decades, as U.S. energy consumption and imports increased, production fell, prompting the question: is rising oil and gas production in the U.S. likely to alter the four-decades-old debate surrounding energy independence in the U.S. and beyond, and if so, how and with what consequences to international energy markets? This paper evaluates the geopolitics of the U.S. shale gas revolution and its implications for international energy policy.