The ripple effects of the North American energy boom from major importer to soon-to-be exporter are being felt across the Middle East, Russia, and China. This trend will result in new sources of supply, and it will also increase competition, reshape the global geopolitical landscape, and create greater interdependencies among nations, according to Deloitte Touche Tohmatsu Ltd.’s (DTTL’s) 2014 Oil and Gas Reality Check report.
The report focuses on expansion and contraction on a number of fronts: the waxing and waning of dominance among suppliers; the progression into globalization from regionalization in energy markets; the growing shares of some fuels, and the declining roles of others in the global energy mix; and the opening and closing of borders in response to geopolitical concerns.
Adi Karev, DTTL’s global head of oil and gas, commented, “This year, energy markets have been marked by geopolitical motivations and pragmatism to an extent never seen before. The effect of the North American energy revolution will be felt in fewer energy-related tensions across Eurasia, as well as in the continuation of efforts by the US to maintain its role as keeper of the global balance of power in the face of rising Chinese and reviving Russian influence in world affairs.”
