US oil production is really a Game Changer?
US has become the largest producer of oil, a development has stunned the world. It is to be noted that only a decade ago, US used to rely on crude oil imports from other oil producing countries but later on, Shale Revolution had changed the energy requirement dynamics of the US. Though US has won the status of biggest producer, Saudi Arabia enjoys enormous production of crude oil and Trump has to take into confidence OPEC about oil prices and production measurements. It implies US cannot fully reap the geopolitical benefits the way Russia has been doing thus energy boom seemingly fails to deliver as expected.
The immense energy resources and extraction in Government’s control help administrations to carry out energy diplomacy which US is lacking leaving oil production at the hands of the market. There is no synergy between state policies and production market. Though the pace and volume of US self-reliance in energy is un-deniable but market is not a stick you beat someone with. Currently, US is producing 11.4 million barrels per day and expected to increase up to 12 million barrel per day by next year.
Apart from Geo-political benefits, economic well-being is quite obvious. It is to be noted that oil production at home will eventually keep dollars in home boosting GDP. Moreover, it will help in erasing trade deficit with trading partners and will prove shock absorb-er in case of global crisis. On the other hand, it will liberate Foreign Policy options towards other oil producing companies.