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Jul 2, 2012
Posted by Scott Bates
Break US
Dependence on OPEC oil
For the
first time in generations, it is now possible
to break US dependence on energy that is
purchased from OPEC. The dramatic
breakthroughs in extraction technology in the
past five years have made accessible vast
sources of energy previously out of reach on
the North American continent. Some observers
say that energy markets are global in nature,
and that energy "independence" is not a
desirable or achievable goal. However energy
has not been a true market since OPEC decided
to distort the market by exercising the
prerogatives of a cartel. Development of
secure sources of energy on the North American
continent can be a geopolitical "game changer"
for the United States and our allies in terms
of rectifying current account imbalances,
spurring economic growth and avoiding inflation
driven by the price shocks due to decisions
taken in the OPEC board room in
Vienna.
US and Canada as undisputed leaders in
energy technology
The energy
sources unlocked by technological developments
in the oil and gas industry in the last five
years are not confined to North America, nor
are the technology and techniques necessary for
enjoying the benefits of these discoveries
unique to our region. History is replete
with instances where those who invested in a
scientific breakthrough or provided investment
for a revolutionary technique were outpaced by
competitors who moved more quickly. By
moving with all deliberate speed to develop the
full potential of shale and natural gas
deposits on the North American continent, in
addition to creating secure sources of energy,
North American companies can become the
undisputed leaders in a field of energy
exploration and development that is soon to
sweep the world and transform markets. It is in
our national security and economic interest to
ensure that North American companies and
workers are the best equipped and best trained
to take advantage of these tremendous wealth
creation opportunities.
Building Resilient
Infrastructure
The supplies and
technology exist to access the resources needed
to have secure sources of energy for the United
States based on the North American continent,
however much infrastructure needs to be built
in order to safely develop and move these
resources to market. One or two instances of
error leading to environmental damage can be
enough to halt billion dollar projects that
could lead to thousands of new jobs and reduced
carbon emissions. It is therefore imperative
that new infrastructure needs to be built to
create safe and secure sources of energy for
North America. Systems must be resilient
enough to withstand natural disasters and deter
those who may have an interest in disrupting
supply.
Creating Coalitions
In the
past decade the world has gone through a period
of tremendous turbulence. The Middle East has
been and continues to be wracked by war and
instability. Competition from East Asia has led
to job disruption for millions of Americans and
financial shocks on Wall Street have rocked
main streets across North America. Yet
amidst all this uncertainty the potential
exists for greatly improving our national
security situation and economic prospects. By
building the new and resilient infrastructure
necessary to take advantage of developments in
energy technology, we can create hundreds of
thousands of new jobs, break our dependence on
OPEC oil and reduce emissions.
However to
build the infrastructure necessary to make this
vision a reality, coalitions will have to be
developed that can create the political and
regulatory environment necessary for
sustainable energy projects to move
forward. For citizens to enjoy all the
benefits of secure sources of energy, they will
have to accept exploration, development and
transport of oil and natural gas on a larger
scale than has been the case to date. For
industry to enjoy the tremendous opportunities
available in North America, they will have to
work with the public and elected officials to
create a regulatory regime that fosters
sustainable development.
The views expressed in this blog are those of the authors and do not necessarily represent the views of the Center for National Policy.
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