U.S. Taps New Energy Sources, And Potential Geopolitical Clout
The recent oil and natural gas boom in the U.S. is paying major dividends for Washington's geopolitical clout. Thanks to hydraulic fracturing, the U.S. is awash in domestic energy, which is having a ripple effect globally.
If you want to gauge one effect of this new found energy wealth, you don't have to look any further than the current crisis between Russia and Ukraine, says Michael Levi, a senior fellow for energy and the environment at the Council on Foreign Relations.
He says the U.S. would be reacting very differently to what's happening now if it was still a big natural gas importer. There's concern Moscow could cut natural gas supplies to the Ukraine which, in turn, would disrupt the flow to much of Europe.
Even five years ago, Levi says, Washington would have been alarmed that European nations could turn to U.S. suppliers, driving up the cost.
"We would be asking ourselves with every policy option we face, 'Will this disrupt markets and come back to hurt the U.S. economy?' We're not asking ourselves that question, because we're not dependent on imports," he says. "That's a surprise — and a good one."
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