America's Unconventional Energy Boom and How It Is Changing the Way the World Works

Takeaways from the Harvard Kennedy School IDEASpHERE discussion “America’s Unconventional Energy Boom and How It Is Changing the Way the World Works,” with Meghan O’Sullivan and Holly Morrow

Sampling of Notable Thoughts

The unconventional energy revolution is the latest and maybe the most exciting iteration of the intersection between energy and international politics. – Meghan O’Sullivan

Years ago, most people would’ve predicted that the U.S. was going to be importing huge amounts of natural gas, but now we’re looking at a situation where the debate is about the export of American natural gas. – Meghan O’Sullivan

"There’s a lot of news talking about how the US should sell its gas to Ukraine. Well, the U.S. doesn't have gas to sell; private companies have gas to sell.” – Holly Morrow

“What they’re trying to do in China is in effect mandate state-owned enterprises to reproduce the unconventional gas boom that we've seen in North America, which is exactly the opposite of how it was done in the US.” – Holly Morrow

Summary

Geopolitics of Energy Director Meghan O’Sullivan joined Geopolitics of Energy Fellow Holly Morrow for an IDEASpHERE event titled “America’s Unconventional Energy Boom and How It Is Changing the Way the World Works.”

Their discussion centered on America's recent access to new technology and sources of energy—dubbed the “unconventional energy revolution”— and its impact international politics.

According to O’Sullivan, the technological revolution brought on by the marrying of hydraulic fracturing and horizontal drilling into a process known as fracking, has given the U.S. a viable and economic way to tap into previously inaccessible sources of shale oil and natural gas.

Morrow identified China as the United States’ main contender in this unconventional revolution. She noted, however, that the make-up of its large state-owned energy companies will make it difficult to emulate the industry structure attained by smaller, innovative American firms.

O’Sullivan and Morrow agreed that while access to new sources of energy may allow the U.S. more leverage on the world stage, market forces will not allow it to completely bypass issues such as involvement in the Middle East, where instability can still affect global energy prices. Similarly, the price differential will not make it easy to wean Europe off cheap Russian natural gas.