Scared Monkeys Discussion Forum

BRUSSELS, Belgium — America's fracking revolution is changing the dynamics of world energy.

Since November, the United States has replaced Saudi Arabia as the world's biggest producer of crude oil. It had already overtaken Russia as the leading producer of natural gas.

The emergence of the United States as a global energy superpower has a profound strategic impact that is raising expectations and concerns among America's allies.

“This is something that is going to change not only the energy market in the world, but everything else,' said Jeppe Kofod, a Danish lawmaker who is drafting a report on the oil and gas revolution for NATO's Parliamentary Assembly.

“It has huge political and geo-strategic implications,' Kofod told a recent meeting of legislators from the 28 alliance nations.

The lawmakers expressed concern America's shift toward self-sufficiency in energy will weaken its strategic interest in the Middle East, North Africa and the Persian Gulf, while Europe remains dependent on oil and gas supplies from the region.

While US companies have seen energy prices tumble in a decade of shale production, their European competitors are paying up to five times more for gas. That's holding back hopes of Europe climbing out of recession and regaining competitiveness on world markets.

Europeans are not the only ones concerned. Japan's energy prices are even higher than Europe's and even China is feeling the heat as cut-price power makes production cheaper in America.

And you may not see it yet, but the U.S.-Mexico relationship grows stronger every day. We are neighbors, after all. A system of gas interconnections and pipelines are in progress to see Mexico unify with the U.S. as it turns away from costly oil-burning power plants.

A major natural gas line is under construction right now that runs from Arizona into the Sonora and Sinaloa states – regions that until now have suffered economically because of energy constraints.

In the motion, Calpine cites concerns that the company’s “terms and conditions for natural gas service… may be affected.” No other details are given, but it’s a safe bet the company is concerned about increased Mexican exports driving up prices of its currently-cheap natural gas supply.

This could be the set-up for a battle between gas exporters and domestic consumers. The former looking for higher prices, the latter trying to keep natgas more affordable. You can bet those old axes “national interest” and “domestic security” are going to get trotted out.