Source: Voice of America

Speaking on Voice of America, Carnegie's David Burwell explained that U.S. energy production has changed dramatically in the past four years. During President Obama’s first election in 2008, peak oil concerns and resource depletion fears were commonplace in the national energy debate. In contrast, the recent 2012 presidential election rhetoric was dominated by energy independence and the potential to reduce the trade deficit through the newfound abundance of domestic U.S. oil and gas. New technologies, such as hydraulic fracturing, more commonly referred to as fracking, have made it possible to tap unused energy sources, Burwell said. By 2020, the United States will be the biggest producer of oil in the world, he added, and by 2030 it will be a net exporter.

This not only changes domestic politics and energy consumption, but it also shifts global geopolitics, Burwell explained. The United States will no longer be dependent on oil from the Middle East and instead rely exclusively on the Western Hemisphere. Middle Eastern oil markets will shift eastward to accommodate the growing economies of Asian nations, like China.

This new abundance is also causing the domestic price of fossil fuels to fall, which incentivizes consumers to continue their reliance on oil and gas, Burwell cautioned. He argued that unconventional oils and gas must be managed in order to promote energy diversification and save investments in renewable energy technology. To complement this regulation, he said, a carbon tax is needed to avoid the catastrophic consequences of climate change. Although international negotiations have been fruitless, the United States could become a leader in climate change policy by creating a pricing structure for other nations to follow, Burwell concluded.