174
Between 2010 and March 2013, the American Pharmaceutical Association registered around 100 new chemical projects worth $72 billion, all of which will be
implemented in the United States. According to one commercial accounting firm,
by the year 2025, around one million new job opportunities will be created in the
US industrial sector due to the decline in energy prices. Other similar research suggests that US exports will increase dramatically in the coming years and decades.
Any upsurge in industrial production will surely have a positive impact on other
sectors of the economy and will lead to an increase in the overall growth rate of the
economy. The positive effects of this trend are felt even now, and many economists
believe that the main reason for rising production and economic growth in recent
years has been a decline in energy prices in the United States (www.bbc.com
2017a, b, c).
The shale gas and oil revolution in the US has direct links to the evolution of US
foreign policy in the Middle East. According to Admiral Dennis Blair, a former
director of National Intelligence, the shale oil revolution and increase in oil production capacity in North American oil production allowed the US and its allies to
impose sanctions against the Iranian energy sector in protest against Iran’s nuclear
program with little economic fall-out. Over the course of the sanctions regime, Iran,
an OPEC member and holder of the fourth highest global oil reserves saw a fall in
oil production capacity to a minimal 900,000–1,300,000 bpd by August 2013 (www.
washingtonpost.com 2017). The oil boom could help the US to impose further sanctions against Iran without having to worry about interruptions to its oil supply or oil
prices after sanctions (www.washingtonpost.com 2017).
According to a report by the Energy Information Administration released in
2006, US oil production capacity will necessarily fall from 5.9 mbpd in 2010 to 4.6
mbpd by 2030. Before Obama’s first term, it was expected that domestic oil production would continue its abrupt decline as a result of a reduction in the production
capacity of existing oil fields (www.thenation.com 2017). Obama’s former national
security adviser believes that the energy boom and increase in US oil production
capacity has two major “geostrategic impacts.” According to Tom Donilon, the
energy boom and increase domestic oil production capacity, will strengthen the US
economy, thereby sending:
…a powerful message that the United States has the resources, as well as the resolve, to
remain the world’s pre-eminent power for years to come… America’s new energy posture
allows us to engage from a position of greater strength. Increasing US energy supplies acts
as a cushion that helps reduce our vulnerability to global supply disruptions and price
shocks. It also affords us a stronger hand in pursuing and implementing our international
security goals. (www.thenation.com 2017)
The Obama Administration used the US energy boom to force greater pressure
on Iran diplomatically. The US’ reduction on the dependence on Middle East oil
allowed the Obama Administration to push for increasing sanctions on Iran. Tom
Donilon argued that:
5 US Energy Diplomacy Under the Obama Administration
Between 2010 and March 2013, the American Pharmaceutical Association registered around 100 new chemical projects worth $72 billion, all of which will be
implemented in the United States. According to one commercial accounting firm,
by the year 2025, around one million new job opportunities will be created in the
US industrial sector due to the decline in energy prices. Other similar research suggests that US exports will increase dramatically in the coming years and decades.
Any upsurge in industrial production will surely have a positive impact on other
sectors of the economy and will lead to an increase in the overall growth rate of the
economy. The positive effects of this trend are felt even now, and many economists
believe that the main reason for rising production and economic growth in recent
years has been a decline in energy prices in the United States (www.bbc.com
2017a, b, c).
The shale gas and oil revolution in the US has direct links to the evolution of US
foreign policy in the Middle East. According to Admiral Dennis Blair, a former
director of National Intelligence, the shale oil revolution and increase in oil production capacity in North American oil production allowed the US and its allies to
impose sanctions against the Iranian energy sector in protest against Iran’s nuclear
program with little economic fall-out. Over the course of the sanctions regime, Iran,
an OPEC member and holder of the fourth highest global oil reserves saw a fall in
oil production capacity to a minimal 900,000–1,300,000 bpd by August 2013 (www.
washingtonpost.com 2017). The oil boom could help the US to impose further sanctions against Iran without having to worry about interruptions to its oil supply or oil
prices after sanctions (www.washingtonpost.com 2017).
According to a report by the Energy Information Administration released in
2006, US oil production capacity will necessarily fall from 5.9 mbpd in 2010 to 4.6
mbpd by 2030. Before Obama’s first term, it was expected that domestic oil production would continue its abrupt decline as a result of a reduction in the production
capacity of existing oil fields (www.thenation.com 2017). Obama’s former national
security adviser believes that the energy boom and increase in US oil production
capacity has two major “geostrategic impacts.” According to Tom Donilon, the
energy boom and increase domestic oil production capacity, will strengthen the US
economy, thereby sending:
…a powerful message that the United States has the resources, as well as the resolve, to
remain the world’s pre-eminent power for years to come… America’s new energy posture
allows us to engage from a position of greater strength. Increasing US energy supplies acts
as a cushion that helps reduce our vulnerability to global supply disruptions and price
shocks. It also affords us a stronger hand in pursuing and implementing our international
security goals. (www.thenation.com 2017)
The Obama Administration used the US energy boom to force greater pressure
on Iran diplomatically. The US’ reduction on the dependence on Middle East oil
allowed the Obama Administration to push for increasing sanctions on Iran. Tom
Donilon argued that:
5 US Energy Diplomacy Under the Obama Administration