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Michael Kern

Michael Kern

Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, 

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How U.S. Shale Changed The Face Of Global Politics

  • The early days of the U.S. shale boom were characterized by innovation-driven disruption throughout an industry that had changed very little over time.
  • Fracking technology unlocked unfathomable reserves in the oil and gas realm.
  • The U.S. shale revolution had a profound impact on global politics.
Permian Oil

In the early 2000s, a revolution was unfolding in the energy industry. Technological advancements in horizontal drilling and hydraulic fracturing had unlocked vast reserves of oil and natural gas trapped in shale rock formations deep beneath the earth's surface.

The U.S. was sitting on top of one of the largest shale deposits in the world, known as the Permian Basin, which spans parts of Texas and New Mexico. As companies began to explore and drill in this region, they discovered that there were immense amounts of oil and gas waiting to be extracted.

This discovery sparked what would become known as the historic U.S. shale boom - a period of rapid growth in domestic oil and gas production that would have significant geopolitical implications for years to come.

How did it happen?

The shale boom didn't happen overnight. It was the result of decades of research and development by geologists, engineers, and scientists who were looking for new ways to extract oil and gas from unconventional sources.

Horizontal drilling was one key breakthrough that made shale production possible. This technique involves drilling down vertically into the earth until reaching a layer of shale rock, then turning the drill bit horizontally to follow along with the layer.

Once horizontal drilling had been perfected, hydraulic fracturing (or "fracking") became another essential tool for extracting oil and gas from shale formations. This process involves pumping a mixture of water, sand, and chemicals into wells at high pressure to fracture the rock and release trapped hydrocarbons.

Together, these technologies allowed companies to access previously inaccessible reserves of oil and gas locked away in shale formations across North America.

Geopolitical Implications

The U.S. shale boom had far-reaching geopolitical implications that continue to shape global politics today. Here are just a few examples:

Reduced Dependence on Foreign Oil

The most immediate impact of the shale boom was that it dramatically reduced America's dependence on foreign sources of oil. In 2005, net imports accounted for more than 60% of U.S. petroleum consumption; by 2019, that figure had fallen below 10%.

This shift towards domestic energy production has given American policymakers greater flexibility when it comes to foreign policy decisions related to energy security. For example, sanctions against major oil-producing countries like Iran or Venezuela are less likely to have severe economic consequences for Americans since they can rely on their own domestic supply instead.

Increased Energy Security

In addition to reducing dependence on foreign sources of oil, increased domestic production has also improved energy security within the United States itself.

During times when global energy markets are volatile or disrupted (such as during wars or natural disasters), having a reliable source of domestically produced energy gives America an advantage over other countries whose supplies may be more vulnerable.

A New Balance Of Power

The rise in American energy production has also shifted global power dynamics significantly - particularly between Russia and Europe.

Before the shale boom took off, Russia held significant leverage over European countries due to its position as a major supplier of natural gas - which many European nations depend on heavily for heating homes and powering industries.

However, as American exports have flooded international markets (particularly those previously dominated by Russian producers), Europe now has more options when it comes to sourcing its energy needs - giving them greater independence from Russia's influence.

Changing Global Energy Markets

Finally - perhaps most significantly -the emergence of new players in global energy markets is fundamentally altering how we think about geopolitics itself.

With new technologies making it simpler than ever before for companies around the world to extract previously inaccessible reserves from unconventional sources (like tar sands or deepwater offshore fields), traditional power structures based around resource-rich states are being challenged like never before.

As emerging economies like China continue to drive demand for oil , these shifts will only become more pronounced - making it all but impossible for any single country or group of countries to completely control global energy markets moving forward.



The early days of the U.S. shale boom were characterized by innovation-driven disruption throughout an industry that had changed very little over time.

Today – several decades later- we see some geopolitical ramifications from this momentous change still unfolding.

As we look ahead towards an uncertain future marked by climate change concerns amidst continued population growth worldwide- it is clear that innovations like those behind America’s original Shale Boom will play an increasingly important role in shaping our world moving forward

By Michael Kern for Oilprice.com

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