Breitling Oil and Gas Texas and California Morning Podcast #353

Recent development in the U.S. of technologies for extracting oil and natural gas from shale formations are changing the global energy landscape. Thanks to hydraulic fracturing or fracking U.S. oil imports have dropped to the lowest level in 20 years and the U.S. is well on its way to become a major player in the global market for liquefied natural gas. Many Chinese officials believe that U.S. self-sufficiency in energy, should it come to pass, would weaken U.S. interest in the Persian Gulf, leading to a military withdrawal from the region. This could in turn compromise China’s energy security. I personally see a U.S. energy transition as a great plot to de-industrialize China by luring industrial production from the mainland back to the U.S., where natural gas prices are cheap.

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