204
viders for China could be OPEC members, who have spare production capacity,
namely Kuwait, the United Arab Emirates, or Saudi Arabia. Moreover, Russia could
also be among the alternative providers for China (https://www.forbes.com/sites/
daneberhart/2019/05/20/neverending-us-china-trade-war-puts-energy-dominanceat-risk/#2eefe3772c6d 2019).
Energy Dominance as Leverage for US Foreign Relations
Currently, the US is the largest producer of oil in the world. At a rate of 12.8 million
bpd, it is pumping out even more than Saudi Arabia can produce. The US is also
producing more natural gas than it knows what to do with. The US must understand
the strength of its position regarding energy and figure out how to benefit from it,
especially in terms of foreign policy. The US is now producing more oil than any
country in history, with the potential to develop more offshore wells, and benefit
from developments in fracking and infrastructure (www.realclearpolitics.com
2020). As for China, China is the world’s largest importer of oil and gas as both the
manufacturing industry and the growing consumer economy depend on foreign
energy. Although China brings in most of its fuel from Saudi Arabia and Russia, the
US has control over 10% of the global supply. This provides Washington with an
effective bargaining chip in forthcoming trade negotiations, which can be leveraged
to press China on human rights abuses (www.realclearpolitics.com 2020).
The implication of “dominance” is that the US could get its geopolitical opponents to yield to its will by means of using energy as a kind of weapon for bargaining. However, it is the market forces, not the policy of the government, that directs
the buying and selling of oil, gas, and other forms of energy produced in the US. To
illustrate, Venezuela, which is nowhere near being an ally of the US, has recently
imported a large volume of crude oil from the US. More specifically, it was imported
by a Venezuelan refinery on the island of Curacao, where US light oil is blended
with heavier Venezuelan crudes (theconversation.com 2020). When other countries,
such as Iran, Russia, or Saudi Arabia, have geopolitical aims underlying their decisions regarding energy trade, US policymakers regularly oppose them. However, it
is beyond question that punishing or rewarding other nations by means of manipulating their energy exports would result in revenge and building new barriers in
trade, which would eventually give harm to both the domestic and global economy
(theconversation.com 2020).
US Withdraw from JCPOA
Sanctions against energy sectors plays important role in US foreign policy under
Trump (www.ft.com 2020). Trump’s opposition to JCPOA was predictable from
2016 and the beginning of his presence in the White House, and he started JCPOA’s
warning to Iran in July 2017, when the US State Department spoke of a new concept
6 Trump Energy Diplomacy
viders for China could be OPEC members, who have spare production capacity,
namely Kuwait, the United Arab Emirates, or Saudi Arabia. Moreover, Russia could
also be among the alternative providers for China (https://www.forbes.com/sites/
daneberhart/2019/05/20/neverending-us-china-trade-war-puts-energy-dominanceat-risk/#2eefe3772c6d 2019).
Energy Dominance as Leverage for US Foreign Relations
Currently, the US is the largest producer of oil in the world. At a rate of 12.8 million
bpd, it is pumping out even more than Saudi Arabia can produce. The US is also
producing more natural gas than it knows what to do with. The US must understand
the strength of its position regarding energy and figure out how to benefit from it,
especially in terms of foreign policy. The US is now producing more oil than any
country in history, with the potential to develop more offshore wells, and benefit
from developments in fracking and infrastructure (www.realclearpolitics.com
2020). As for China, China is the world’s largest importer of oil and gas as both the
manufacturing industry and the growing consumer economy depend on foreign
energy. Although China brings in most of its fuel from Saudi Arabia and Russia, the
US has control over 10% of the global supply. This provides Washington with an
effective bargaining chip in forthcoming trade negotiations, which can be leveraged
to press China on human rights abuses (www.realclearpolitics.com 2020).
The implication of “dominance” is that the US could get its geopolitical opponents to yield to its will by means of using energy as a kind of weapon for bargaining. However, it is the market forces, not the policy of the government, that directs
the buying and selling of oil, gas, and other forms of energy produced in the US. To
illustrate, Venezuela, which is nowhere near being an ally of the US, has recently
imported a large volume of crude oil from the US. More specifically, it was imported
by a Venezuelan refinery on the island of Curacao, where US light oil is blended
with heavier Venezuelan crudes (theconversation.com 2020). When other countries,
such as Iran, Russia, or Saudi Arabia, have geopolitical aims underlying their decisions regarding energy trade, US policymakers regularly oppose them. However, it
is beyond question that punishing or rewarding other nations by means of manipulating their energy exports would result in revenge and building new barriers in
trade, which would eventually give harm to both the domestic and global economy
(theconversation.com 2020).
US Withdraw from JCPOA
Sanctions against energy sectors plays important role in US foreign policy under
Trump (www.ft.com 2020). Trump’s opposition to JCPOA was predictable from
2016 and the beginning of his presence in the White House, and he started JCPOA’s
warning to Iran in July 2017, when the US State Department spoke of a new concept
6 Trump Energy Diplomacy