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© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
O. Shokri Kalehsar, US Energy Diplomacy in the Caspian Sea Basin,
https://doi.org/10.1007/978-3-030-66929-4_5
Chapter 5
US Energy Diplomacy Under the Obama
Administration
Abstract In December 2015, US removed the prohibition of crude oil exports.
That was a deal, a political compromise, which was made between the Obama
administration and the Republicans on Capitol Hill. Among other items, the renewable energy tax credit was extended for 5 years. Hence, it was part of a larger political compromise; nevertheless, the fact that America could export light and sweet
shale, and at the same time import heavier makes considerably sense in both economic and business terms. This kind of an especially important political action took
place under the Obama administration, not the Trump administration.
The shale revolution prompted Obama to pay special attention to renewable
energy and to environmental issues. The use of energy in US foreign policy
increased, and the use of sanctions against other countries’ energy industries also
became a major factor in the Obama administration’s foreign policy. The United
States is one of the three branches of power in the oil market that reduces or increases
production, and makes changes in strategic reserves; in other words, all of its energy
policies and strategies to achieve these policies affect market trends. Relying on the
oil and gas component, the US government seeks to maximize its foreign policy
diplomatic and military interests at the international level and to use this factor and
its price fluctuations as a tool to support allies and punish rivals, including Iran.
Although parts of Obama’s energy program have been approved in the past by
experts and presidents of the United States, some parts of them are completely new
proposals. The use of US strategic oil reserves to lower oil prices and reduce offshore drilling permits are new proposals whose prevailing view is in stark, in contrast to the Republican view. To that end, he wants to sell 70 million barrels of US
strategic oil reserves.
Keywords Oil export ban · LNG exports · Shale gas · National Security · All-ofthe-above energy strategy · Pivot to Asia
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
O. Shokri Kalehsar, US Energy Diplomacy in the Caspian Sea Basin,
https://doi.org/10.1007/978-3-030-66929-4_5
Chapter 5
US Energy Diplomacy Under the Obama
Administration
Abstract In December 2015, US removed the prohibition of crude oil exports.
That was a deal, a political compromise, which was made between the Obama
administration and the Republicans on Capitol Hill. Among other items, the renewable energy tax credit was extended for 5 years. Hence, it was part of a larger political compromise; nevertheless, the fact that America could export light and sweet
shale, and at the same time import heavier makes considerably sense in both economic and business terms. This kind of an especially important political action took
place under the Obama administration, not the Trump administration.
The shale revolution prompted Obama to pay special attention to renewable
energy and to environmental issues. The use of energy in US foreign policy
increased, and the use of sanctions against other countries’ energy industries also
became a major factor in the Obama administration’s foreign policy. The United
States is one of the three branches of power in the oil market that reduces or increases
production, and makes changes in strategic reserves; in other words, all of its energy
policies and strategies to achieve these policies affect market trends. Relying on the
oil and gas component, the US government seeks to maximize its foreign policy
diplomatic and military interests at the international level and to use this factor and
its price fluctuations as a tool to support allies and punish rivals, including Iran.
Although parts of Obama’s energy program have been approved in the past by
experts and presidents of the United States, some parts of them are completely new
proposals. The use of US strategic oil reserves to lower oil prices and reduce offshore drilling permits are new proposals whose prevailing view is in stark, in contrast to the Republican view. To that end, he wants to sell 70 million barrels of US
strategic oil reserves.
Keywords Oil export ban · LNG exports · Shale gas · National Security · All-ofthe-above energy strategy · Pivot to Asia