Energy

The subtitle tells the story. In the early 2000s, many pundits and politicians talked up “peak oil”, “energy scarcity,” and all that. In a geological heartbeat later—about a decade—the world had entered an era of “energy abundance,” largely due to innovations that allowed producers to crack into shale formations to release massive new sources of oil and gas. The United States has gone furthest and fastest in fracking and is setting records for oil and gas production. For the US, says O’Sullivan, this has been an economic, strategic, and environmental game-changer. For the rest of the world, the effects are more differentiated but hardly less profound.

The subtitle tells the story. In the early 2000s, many pundits and politicians talked up “peak oil,” “energy scarcity,” and all that. In a geological heartbeat later—about a decade—the world had entered an era of “energy abundance,” largely due to innovations that allowed producers to crack into shale formations to release massive new sources of oil and gas. The United States has gone furthest and fastest in fracking and is setting records for oil and gas production. For the US, says O’Sullivan, this has been an economic, strategic, and environmental game-changer. For the rest of the world, the effects are more differentiated but hardly less profound.

If asked what will be the most consequential meeting this weekend in Argentina at the G-20, you might have a hard time making up your mind. You’d have good reason to choose a) the Trump-Xi bilateral. But b), the gathering to sign the new Nafta deal, could also go awry. If you are like me, you are relieved that c), the Trump-Putin meeting, is now off the table.

Unsurprisingly, President Donald Trump hasn’t held back when speaking about the political crisis in Venezuela. Before the United Nations General Assembly, he demanded the full restoration of “democracy and political freedoms” in the Latin American country. A month earlier, he stunned many by stating that he would not rule out a military intervention. His UN ambassador, Nikki Haley, has echoed the fierce rhetoric, declaring that the U.S. will not tolerate a “dictatorship” in Venezuela.

Observers are forgiven if they are perplexed. How is the administration’s position toward Venezuela consistent with its oft-stated insistence that every country has the right to be sovereign? Or with Trump’s promises that the days of Washington meddling in the domestic affairs of other countries are over?

In a Harvard Kennedy School IDEASpHERE session titled "Challenges to US Global Leadership," Graham Allison, Nicholas Burns, David Gergen, David Ignatius, and Meghan O’Sullivan discussed challenges as well as opportunities facing the United States. Burns moderated the session.

Challenges include the rise of China and the future of the U.S.-China relationship, the crises taking place around the world, and the reputation of the U.S. worldwide. An unexpected opportunity is the increase in available energy sources in the United States.

Expanding estimates of North America’s supply of accessible shale gas, and more recently, shale oil, have been trumpeted in many circles as the most significant energy resource development since the oil boom in Texas in the late 1920s. How large are these resources? What challenges will need to be overcome if their potential is to be realized? How will they impact U.S. energy policy?

To address these questions, the Belfer Center for Science and International Affairs and two of its programs ― the Environment and Natural Resources Program and the Geopolitics of Energy Project ― convened a group of experts from business, government, and academia on May 1, 2012, in Cambridge, Massachusetts. The following report summarizes the major issues discussed at this workshop. Since the discussions were off-the-record, no comments are attributed to any individual. Rather, this report attempts to summarize the arguments on all sides of the issues.