Big changes are already underway in the global energy sector. And some of these changes are contrary to previous expectations. What we now realize, once again, is that capitalism works. Capitalism has always solved our most basic problems. Even now it is solving our energy problem.
Four years ago Russia was the rising powerhouse of global energy production. Marshall I. Goldman’s 2008 book on Russia was titled Petrostate: Putin, Power and the New Russia. As Goldman explained, “Russia … finds itself in a newly assertive, even dominant, international position. Its emergence as a new super energy power overlaps with the weakening of the United States as we have squandered our … resources in Iraq.” But Russia’s energy sector has always been a state-manipulated behemoth with serious problems of its own.
According to the IEA report, the United States will become “nearly self-sufficient in energy” by 2020, and will become a net exporter of natural gas. Even more surprising, North America will emerge as a net oil exporter, “accelerating [a] switch in direction of international oil trade, with almost 90% of Middle Eastern oil exports being drawn to Asia by 2035.”
The question may be asked: Are these projections part of some bizarre fantasy? Damian Carrington of the Guardian UK recently wrote that the IEA report is a reminder that the “peak oil idea has gone up in flames.” The Financial Times headline reads, “US to be world’s top energy producer.” And then there was the 13 November Forbes piece by Mark P. Mills, “The International Energy Agency Catches Up With America’s Oil Producers” – which begins with the following comment: “We welcome the IEA to the community of experts noticing the energy world has changed. It takes time for the prognosticators and pundits to catch up with the producers.”
Of course, big daddy government could put an end to America’s glorious energy future. Bureaucrats who fear “global climate change” might easily invoke rules and regulations that could kill our best economic hopes at the outset. It should be remembered that the creative miracles of capitalism depend on economic freedom, and economic freedom is seriously threatened today. I am reminded of the poignant short video, “If I wanted America to Fail.” Readers should visit FreeMarketAmerica.org and view other educational videos about the assault on economic freedom and the “miracle of the free market.”
Full article: A Shift in the Global Energy Balance (Financial Sense Online | JR Nyquist)