Advertisement

The USA: Destination for a New Energy

Chapter
  • 50 Downloads

Abstract

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.

References

  1. 1.
    Roche, Elizabeth. 2016. India to Receive Its First Imports of US Shale Gas in 2017. Livemint, January 20. https://www.livemint.com/Industry/m68UrJwByFEQUwrsmhkAAK/India-to-receive-its-first-imports-of-US-shale-gas-in-2017.html.
  2. 2.
    Ghimire, Sudeep. 2018. Despite Its Lure, India Shouldn’t Fall Into the Trap of Shale Oil and Gas Extraction. https://www.youthkiawaaz.com/2018/01/fracking-in-context-to-india/.
  3. 3.
    McNally, Robert. 2017. Crude Volatility: The History and the Future of Boom-Bust Oil Prices. New York: Columbia University Press.CrossRefGoogle Scholar
  4. 4.
    Arora, Bhanvi. 2018. No Commercial Discovery of Shale Gas Reserves in India Yet, Says Pradhan, July 30. https://www.bloombergquint.com/business/no-commercial-discovery-of-shale-gas-reserves-in-india-yet-says-pradhan.
  5. 5.
    Brown, Stephen P.A., and Hillard G. Huntington. 2013. Assessing the US Oil Security Premium. Energy Economics 38: 118–127.CrossRefGoogle Scholar
  6. 6.
    Dadwal, Shebonti Ray. 2017. The Geopolitics of Gas: Common Problems, Disparate Strategies. New Delhi: Pentagon Press.Google Scholar
  7. 7.
    Nye, Joseph H. 2017. The Changing Geopolitics of Energy. Project Syndicate, November 1, https://www.project-syndicate.org/commentary/shale-energy-geopolitical-consequences-by-joseph-s--nye-2017-11?barrier=accesspaylog.
  8. 8.
    Energy Information Administration. 2016. Annual Energy Outlook 2016 with Projections to 2040. August 2016, http://www.eia.gov/forecasts/aeo/pdf/0383.pdf.
  9. 9.
    Yergin, Daniel. 2012. The Quest: Energy, Security, and the Making of the Modern World, 331–334. London: Penguin Books.Google Scholar
  10. 10.
    Dadwal, Shebonti Ray. 2017. The Geopolitics of Gas: Common Problem and Disparate Strategies, 29. New Delhi: Pentagon Press.Google Scholar
  11. 11.
    EIA International Energy Statistics. 2015. Shale in the United States, October 22. www.eia.gov/energy_in_brief/article/shale_in_theunited_states.cfm. International Gas Union, World Energy Report-2015, Oslo, International Gas Union, June 2015. http://www.igu.org/sites/default/files/node-page-field_file/IGU-world%20LNG%20Report-2015%20Edition.pdf.
  12. 12.
    Grigas, Agnia. 2017. The New Geopolitics of Natural Gas, 4–6. Cambridge: Harvard University Press.CrossRefGoogle Scholar
  13. 13.
    Kaplan, Robert D. 2012. How Shale May Change The Future of Geopolitics: Economy Watch. December 20. http://www.economywatch.com/economy-business-and-finance-news/how-shale-may-change-the-future-of-geopolitics.20-12.html.
  14. 14.
    Ahmad, Talmiz. 2014. India Widens Its Oil Basket as US Begins Exports, But Energy Security Still Hinges on West Asia. Outlook, October 4. https://www.outlookindia.com/website/story/india-widens-its-oil-basket-as-the-us-begins-imports/302592.
  15. 15.
    Ebinger, Charles, and Mehta, Vikram. 2017. Time to Act on U.S.-India Energy Cooperation. https://www.brookings.edu/wp-content/uploads/2017/…/2ndmodi_o_mehtaebinger.pd….
  16. 16.
    Pradhan, S.K. 2015. Shale Gas in Indo-US Cooperation. Geopolitics V (IX): 62–65.Google Scholar
  17. 17.
    Singh, Animesh. 2015. Amendments in Coal Bed Methane Policy in Works to Encourage Output. The Pioneer, March 4. https://www.dailypioneer.com/2015/business/amendments-in-coal-bed-methane-policy-in-works-to-encourage-output.html.
  18. 18.
    Paraskova, Tsvetana. 2018. India Allows Firms To Drill For Shale Oil, Gas Under Existing Contracts. OILPRICE.COM, August 1. https://oilprice.com/Latest-Energy-News/World-News/India-Allows-Firms-To-Drill-For-Shale-Oil-Gas-Under-Existing-Contracts.html.
  19. 19.
    Vaid, Manish. America’s First Energy Plan Can Reset India-US Energy Ties. Observer Research Foundation. https://www.orfonline.org/research/americas-first-energy-plan-can-reset-india-us-energy-ties/.
  20. 20.
    Jacob, Shine. 2018. First US Shale Gas Reaches India; GAIL’s Dabhol Terminal Receives Cargo. Business Standard, March 31. https://www.business-standard.com/article/companies/first-us-shale-gas-reaches-india-gail-s-dabhol-terminal-receives-cargo-118033000617_1.html.
  21. 21.
    Bhaskar, Utpal. 2018. India-US Move Ahead on Strategic Energy Partnership. Livemint, April 18. https://www.livemint.com/Industry/3HRQhA5iLCYYz8t5ecTyjK/IndiaUS-move-ahead-on-strategic-energy-partnership.html.
  22. 22.
    Rajendran, M. 2017. India Looks at Buying More US Oil to Reduce West Asia Dependence. The New Indian Express, October 18. http://www.newindianexpress.com/business/2017/oct/18/india-looks-at-buying-more-us-oil-to-reduce-west-asia-dependence-1676996.html.
  23. 23.
  24. 24.
    Russell, Clyde. 2018. Column: U.S. Crude Exports to India Surge as China Intake Fades. Reuters, August 7. https://in.reuters.com/article/column-russell-crude-india/column-u-s-crude-exports-to-india-surge-as-china-intake-fades-idINKBN1KS0M4.
  25. 25.
    Tobben, Sheela. 2018. US Oil Sellers May Look to India as China Tariff War Escalates. The Economic Times, July 7. https://economictimes.indiatimes.com/markets/commodities/news/us-oil-sellers-may-look-to-india-as-china-tariff-war-escalates/articleshow/64893080.cms.
  26. 26.
    Chakraborty, Debjit. 2018. China and India Want to Buy More US Oil to Counter Opec. The Economic Times, June 14, https://economictimes.indiatimes.com/markets/commodities/news/china-and-india-want-to-buy-more-us-oil-to-counter-opec/articleshow/64587200.cms.
  27. 27.
    Samant, Shilpa, and Sharma, Sukalp. 2018. Oil India Plans to Exit US Shale Project, December 27. http://www.cogencis.com/newssection/oil-india-plans-exit-us-shale-project-valuation-improves/.
  28. 28.
    Gupta, Sishir. 2018. US Energy Secy Rick Perry to Meet Union Ministers Pradhan, Goyal to Discuss Crude Oil, Cleaner Coal. The Hindustan Times, February 18. https://www.hindustantimes.com/india-news/us-energy-secy-rick-perry-to-meet-union-ministers-pradhan-goyal-to-discuss-crude-oil-cleaner-coal/story-pj5mskLurRh3LwmRz7PFyO.html.

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.International RelationsPandit Deendayal Petroleum UniversityGandhinagarIndia

Personalised recommendations