Governments still coming to terms with US energy renaissance

CNBC:
The U.S. has undergone an “unprecedented energy transformation” and is changing international energy market dynamics to such an extent that other countries are only just accepting it, according to Frank Fannon, the U.S. assistant secretary of state for energy resources.

Speaking to an audience at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) Tuesday, Fannon said that the U.S.′ evolution into a global leader in energy production offered new opportunities, and challenges, to consumers and producers around the world.

“Governments around the world are still coming to terms with this new reality and reconciling the implications, this is understandable. The U.S. shift from scarcity to abundance occurred with unprecedented speed and scale,” Fannon said.

“For more than 40 years, U.S. law prohibited oil exports but Congress lifted the ban in 2015 and the private sector responded,” Fannon said, “today, the U.S. is the largest producer in the world and on track to produce 13 million barrels (per day) next month.”

He also noted that the country had gone from being the 15th largest exporter of liquefied natural gas (LNG) in 2016, to the third largest exporter currently and that it was changing energy market dynamics by introducing liquidity and choice into the market. The U.S. is the second largest producer of renewable energy, Fannon also stated.

America has certainly shaken up the norms when it comes to energy production and supply. Aside from its so-called “shale oil revolution” that has made it the largest crude oil producer in the world, closely followed by Russia and Saudi Arabia, it has also (in the space of a few years) become one of the major global players in terms of liquefied natural gas (LNG) exports.
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The US is set to become a net energy exporter if it isn't already.  It could also become energy independent if it switched refining capacity from imported heavy crude to the light crude being produced by shale wells.  The biggest danger to energy independence is not OPEC, but the election of Democrats who have said they will shut down fracking. 

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