The US and Middle East oil’ link will not continue anymore. Donald Trump announced that the US is now trying to dominate the world energy market, So Washington’s dependence on West Asian energy is going to end.
Energy is vital to America’s security and prosperity. During the Cold War, the United States had strong interests in ensuring the Middle East was not overlooked by the Soviet Union—we couldn’t risk major disruption to the global oil market. But today, there is no threat to the region from any hegemon. Not only that but also the world energy balance of power has changed dramatically. With a greatly different geopolitical reality, U.S. foreign policy should improve and recalibrate, starting in the Middle East.
Saudi Arabia’s massive oil company, Saudi Aramco, just issued debt in the form of bonds sold to investors. But before investors lined up to buy, they had to search about them, and the documentation banks have provided offers a rare look at the state of oil production in Saudi Arabia.
The “stand out” of the bond outline is that the Ghawar oil field, once the world’s most productive, is decreasing. Today, it produces only a quarter of its capacity from fifteen years ago. This means that Saudi Arabia’s overall capacity to produce crude oil is anticipated decreasing.
The US President Trump on Tuesday visited Shell’s soon-to-be-completed Pennsylvania Petrochemicals Complex, which will change the area’s vast natural gas to plastics. The facility is being built in an area hungry for investment and employment, though critics claim it will become the largest air polluter in western Pennsylvania.
Trump said his administration was “restoring the glory of American manufacturing” and making the nation energy independent. he continued: “We don’t need it from the Middle East anymore,” he added that the plant’s union employees were “the backbone of this country,” sparking chants of the USA from the plant’s workers.
Speaking at the Energy and Production Growth in Monaco, Pennsylvania, Trump said of America’s relationship with West Asia in the energy field, “We will never let foreign energy suppliers dominate us. That’s why they are fighting us. They don’t want us to have huge energy. “They’ve made a lot of money selling us energy.”
He then said of the Strait of Hormuz, “You may have seen what’s going on in the Strait. There aren’t many American boats there … I got out of that deal and did a good job. [Iran] Now it’s a completely different country. But they are taking boats from other countries. They don’t take our boats. One of the issues that have been raised in the media correctly and accurately is that we don’t get many boats anymore because we have our own oil and gas.
“We no longer need [oil and gas] in the Middle East,” the president added. That’s why we not only want energy independence … [but] we seek American dominance of the energy market. Fluency. Instead of relying on foreign countries, we now rely on American manufacturers. We rely on American workers to build our future right here on American.
Trump has long been proud of the country as the world’s leading oil producer and has made it one of his achievements. The US president has in recent months repealed several environmental laws related to his former administration under the pretext of helping the US oil and gas industry. Critics of Trump have described the measures as damaging to the US environment, saying the repeal was triggered by the lobbying of the fossil fuel industry. Leaving Paris Climate Agreement One of Trump’s First Presidential Decisions.
Once, much of the United States’ oil was unavailable because it was trapped in shale rock, deep under the earth’s cover. But about a decade ago American energy producers began using the new technology of hydraulic fracturing and horizontal drilling—previously just used to obtain natural gas—to access oil trapped in shale rock structures like those in the Permian storage.
Supported by private property rights and the rule of law, production grew. U.S. crude output more than doubled, and America now has more recoverable oil reserves than any other country in the world. In the next five years, American oil exports should also surpass Saudi and Russian exports, even though we use far more energy than either of these countries.
Meantime, U.S. natural gas production has likewise flourished in recent years, moreover, reducing America’s dependence on imports and lowering energy costs for American manufacturing. Because of these huge changes, The Economist invented the term “Saudi America.” And continued investment means the American energy industry will become even more disproportionately productive in years to come.
This energy revolution in the United States should have a profound effect on our foreign policy, but it has not yet happened because of Washington’s lack of influence and group thinking.
Today, as policymakers overestimate the strategic importance of the Middle East, there is irrational stabilization in Iran. This has effectively helped us to effectively take sides in a 1,400-year_old religious war between the Sunnis – led by Saudi Arabia – and the Shiites – led by Iran.
It is not in America’s engagement to be picking sides between Saudi Arabia and Iran. The status quo leaves us with less support over either side and has consistently placed us in morally dubious states that run counter to short and long-term American interests. Overall, the Middle East is of diminishing strategic importance, and it’s time to properly order America’s global defense priorities. We must reassess what matters to us.