Denver Post: The global impact of U.S. oil and gas development
Hydraulic fracturing ("fracking") and horizontal drilling are allowing the United States to produce more domestic oil and gas, bringing closer the once unthinkable prospect of America being a net energy exporter. But what are the international implications of America's newfound energy bounty on U.S. foreign policy?
An initial caveat: fracking, or more accurately, oil and gas development, is an industrial activity and can cause negative environmental impacts. But many modern activities have environmental or human health risks. The reasonable response is sensible regulation, not wholesale bans. For example, no reasonable person would propose closing the interstate highway system, despite the thousands of deaths annually associated with interstate use. Instead, we manage the risk through highway design, speed limits and improved automobile safety features.
Looking ahead, even if U.S. energy demand dips, demand outside the U.S. — principally in China and India — will continue to grow. The U.S. Energy Information Administration reported last month that world energy consumption will grow by 56 percent between 2010 and 2040. Global natural gas consumption will grow annually by 1.7 percent and will be the fuel stock for about 25 percent of the world's electricity by 2040. Overall, fossil fuels will continue to supply almost 80 percent of world energy use through 2040.
The environmentally careful development of U.S. oil and gas resources offers opportunities to improve domestic energy security, as well as support America's foreign policy.