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.

The outcry over arms sales, Khashoggi and Yemen is building – but will anyone at the summit in Argentina stand up to MBS? Crown Prince Mohammed bin Salman’s scheduled appearance at the G20 summit next week in Buenos Aires presents world leaders with a moment of truth they would rather avoid.

For weeks this fall, an ebullient President Trump traveled relentlessly to hold raise-the-rafters campaign rallies — sometimes three a day — in states where his presence was likely to help Republicans on the ballot.

But his mood apparently has changed as he has taken measure of the electoral backlash that voters delivered Nov. 6. With the certainty that the incoming Democratic House majority will go after his tax returns and investigate his actions, and the likelihood of additional indictments by special counsel Robert S. Mueller III, Trump has retreated into a cocoon of bitterness and resentment, according to multiple administration sources.

The crisis after the disappearance of Khashoggi shows that the Trump administration knows it still needs Saudi oil. Becoming a net exporter of energy won't change that.

During our holiday newsletter hiatus, I finally had time to read Meghan O'Sullivan's book (pictured above) about how the shale boom is shaking up global oil-and-gas markets — a phenomenon that has broad and important geopolitical effects.

The boom benefits U.S. global posture and economy, but O'Sullivan warns that policymakers cannot be complacent and must take steps to harness its geo-strategic benefits while mitigating environmental risks.