America’s Hush-Hush Energy Boom

The US became energy independent in 2019 and, following a brief pandemic-era dip, went on to become the world’s largest crude oil producer. Ian Bremmer explains how this has giant but largely unnoticed economic and geopolitical implications.

Key Points:

The US now accounts for nearly a fifth of the world’s total oil production and has become the word’s largest LNG gas exporter.

Combined with new renewable energy capacity, the US has quietly but surely become the world’s dominant energy superpower.

This is depriving Russia, Saudi Arabia, Iran and other petrostates of both pricing power and geopolitical leverage.

Domestic energy abundance should also boost new technology and productivity growth, giving the US an advantage over China.

For different reasons, both political parties prefer not to acknowledge all this but it really is happening.

Bottom Line: As John will discuss in his next letter, US energy demand is also growing furiously, thanks in part to power-hungry AI data centers. We are going to need all we can get. Even this sharply higher production may not be enough to avoid higher prices… but it will surely help.

More From Maudlin Economics: