The USA: Destination for a New Energy
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The chapter attempts to analyse the new and unconventional shale energy potentials in both US and Indian energy market. The US strategy and policy framework, nature and extent of bilateral energy trade, US-OPEC-West Asia energy matrix, shale as a game-changer and debate of shale energy exploration versus environment are important areas of discussion in the chapter. This chapter starts with a historical interpretation, starting from the 1950s when the Mosaddegh government of Iran was overthrown. Since then, the USA, the largest consumer of energy, has been facing many challenges in one form or other due to global geopolitical dynamics and security challenges. However, the persistent research and development on shale energy sector by the US scientists and engineers successfully transmitted the USA from importer of energy to the net exporter of energy. The USA has highest reserves of shale in the world which is expected to play as a game-changer in global geopolitics, and thus a shift in the US foreign policy. As India has explored, discovered and undiscovered shale reserves, the US collaboration is foremost important for mutual benefits. Hence, this chapter attempts to explore India–US cooperation in the energy sector and implications for bilateral relations and global interests. Along with the US energy independence, the shale energy will definitely have implications on West Asian geopolitical dynamics, decreasing dependency of USA on the West Asian energy market, more independent foreign policy of USA and reduced role of OPEC in the international energy market due to more supply of energy. Further, the chapter puts an effort to critically assess shale energy trade and investment between the two countries, does the shale exploration cause environmental concerns, and the price effectiveness of shale energy for the suppliers as well as the buyers.
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