The geopolitical importance of US fossil fuel production and supply

Regardless of the hard jabs at the fossil fuel industry which were taken
by Pres. Obama in his State of the Union message, the Wall Street Journal
reports that the US is now exporting oil for the first time in 40 years (see
W JS dated January 13, 2016 article titled “US exports first oil in 40
years”).

Obama made it very clear that fossil fuels are a thing of the past and
that clean fuel and renewable energy are replacing it. Regardless of the
president’s comments there is no realistic reason to believe that a highly
mobile fossil fuel resource denominated in crude oil, coal and natural gas will
be replaced by the much more highly rigid and costly renewable energy
sources of geothermal, solar and wind. To think otherwise is contrary to common
sense.

The US is now the leading producer of fossil energy. The future of
production and supply will only brighten over time as crude oil and natural gas
supplied by the US replaces supplies from the OPEC nations and Russia as the
US becomes the dominant supplier of Europe and other areas of the world.
Even though crude oil prices have dropped to below $30 a barrel for the first
time since 2003, the industry has continued to produce oil supplies at the
current level adding to the global surplus.

For this reason the geopolitical importance of US oil production becomes
ever more important in the global economy. To this end the US becomes the
most dominant player in the supply of fossil energy resources, undermining
global rivals such as OPEC and Russia. Obama totally ignores the importance
to the equation of US energy oil production in the geopolitical arena.

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