The American Shale Revolution And It's Impact

The shale revolution turn the United States from an energy net importer into a net exporter.It redefine the range of commercially exploitable energy by technological innovation,and providing a new way for analyzing the energy market.In the past when oil price were still high,people thought that fossil fuels were Non-renewable will be exhausted.The shale revolution shows that technological progress can make the past commercial non-exploitable energy into exploitable energy.After the shale revolution there are combustible ice mining technology yet to be developed,after combustible ice mining technology there are renewable energy technology.On the contrary,global energy consumption will decline after reach to a certain peak because of the improving energy efficiency.The shale revolution remap the global energy reserves,and make the common sense about energy market a decade ago a nonsense.Traditionally,low oil prices will promote economic growth,while only a small number of countries such as India benefit from lower oil prices after shale revolution.The process of energy politics no longer follow the past experience,when Syria and Libya is in turmoil and ISIS is rising,oil price is declining.Traditionally,Saudi Arabia,which cut oil prices by reducing production,refused to cut production in 2015.According to the International Energy Agency(IEA),energy security refers to‘the ability to obtain energy in the capacity to pay without interruption'.Energy prices are an important part of energy security.Under the influence of the shale revolution,the world's oil and gas market changed from the seller's market into the buyer's market,the bargaining power of the energy importers has improved,and it is difficult for oil and gas-exporters to use the interruption of energy supply as energy weapon"in international politics.On the contrary,in the context of the international economic downturn,some energy exporters have to rely on energy import countries to expand the market and increase revenue.However,the enhancement of position for energy-importing countries in different regions is inconsistent from each other,which is mainly subject to different pricing rules formed by different geographical position and historical reasons.This paper discovers which shift in the energy market in recent years is caused by the shale revolution,which is due to the shale revolution and other factors.This paper examines the impact of the shale revolution on the energy security and economic security of the United States,the traditional energy exporters and the major energy importers,and analyzes the specific behavior and possible behavior in the future in the face of the shale revolution.This paper focuses on the influence of the shale revolution on the pricing rules of the major energy markets,Analyzing how the change in pricing rules affect the political position and political powers between importers and exporters in the energy market,how does different pricing rules make the shale revolution influence differently in different regions,and make recommendations on how to break the "Asian premium" with the influence of the shale revolution.