The implications of this breathtaking transformation go far beyond oil markets and are reshaping the world’s economic order
The United States’ transformation from an imports-dependent energy consumer to an oil and gas powerhouse in around half a decade is nothing short of breathtaking. And it’s just getting started.
The implications of this transformation go far beyond global oil markets and are reshaping the global economic order. The three-year oil price downturn starting in 2014 was induced by U.S. shale and has already rocked many nations in the Organization of the Petroleum Exporting Countries that have to scramble to find new sources of revenues and appease their citizens.
Growing liquefied natural gas exports from the U.S. to Europe can, over time, start diminishing Russia’s dominance in European energy markets. America’s oil renaissance also has huge implications for Canadian oil producers and the wider economy, which has manifested itself in many direct and indirect ways.
Canadian producers have already seen investment dollars move out of the oilpatch and into the U.S. Some Alberta producers and oil driller are also channeling more investments into the U.S. rather than back home.
Meanwhile, American oil and natural gas have already reached the shores of China and other Asian markets, even as Canadian governments and companies weigh the pros and cons of selling fossil fuels to the world’s fastest-growing, energy-hungry markets.