Myths of the Oil Boom : American National Security in a Global Energy Market

The last decade has seen a far-reaching revolution in the oil industry, both in the US and globally. By some measures, America is on pace to become the world's biggest oil producer, an outcome that was inconceivable just a few years ago. But what does this shift really mean for American and global security? In Myths of the Oil Boom, Steve A. Yetiv, an award-winning expert on the geopolitics of oil, takes stock of our new era of heightened petroleum production and sets out to demolish both the old myths and misconceptions about oil and the new ones that are quickly proliferating. As he explains, increased production in the US will not lead to a major reduction in longer term oil prices, even if it has contributed to their precipitous fall in the short run. America will not intervene less in the Persian Gulf just because it is producing more oil domestically. Saudi Arabia is less willing or able to play global gas pump to the world economy than in the past. Building an electric car industry does not mean that consumers will buy in, but neither is it true that a broad shift toward eco-friendly cars will have very little impact on greenhouse gas emissions. Most importantly, raising the level of domestic production will never solve America's energy and strategic problems, and it may in fact worsen climate change unless it is accompanied by a serious national and global strategy to decrease oil consumption. While Yetiv takes on these and a number of other misconceptions in this panoramic account, this is not just an exercise in myth-busting; it's also a comprehensive overview of the global geopolitics of oil and America's energy future, cross-cutting some of the biggest economic and security issues in world affairs. Accessibly written and sharply argued, Myths of the Oil Boom will reframe our understanding of the most politicized commodity in the world. The Last Decade Has Seen A Far-reaching Revolution In The Oil Industry, Both In The Us And Globally. By Some Measures, America Is On Pace To Become The World's Biggest Oil Producer In The Next Decade, An Outcome That Was Inconceivable Just A Few Years Ago. But Does This Shift Mean That The Us Will No Longer Be Beholden To Foreign Autocrats? That Prices Will Go Down For Consumers? That The Global Oil Supply Is Less Susceptible To Shocks? In The American Oil Boom, Steve A. Yetiv, An Award-winning Expert On The Geopolitics Of Oil, Takes Stock Of Our New Era Of Heightened Petroleum Production And Sets Out To Demolish Both The Old Myths And Misconceptions About Oil As Well As The New Ones That Are Quickly Proliferating. As He Explains, Increased Production In The Us Will Not Lead To A Reduction In Prices, In Part Because Oil Is Globally Traded And Opec Will Defend Against Low Prices. America Will Not Intervene Less In The Persian Gulf Just Because It Is Producing More Oil Domestically.^ Saudi Arabia Is Less Willing Or Able To Play Global Gas Pump To The World Economy Than In The Past. Building An Electric Car Industry Does Not Mean That Consumers Will Buy In, But Neither Is It True That A Broad Shift Toward Eco-friendly Cars Will Have Very Little Impact On Greenhouse Gas Emissions. Most Importantly, Raising The Level Of Domestic Production Will Never Solve America's Energy And Strategic Problems, And May Even Worsen Climate Change, Unless It Is Accompanied By A Serious National And Global Strategy To Decrease Oil Consumption. These Are Just Some Of The Myths That Yetiv Takes On In This Panoramic Account. This Is Not Just An Exercise In Myth-busting, However; It's Also A Comprehensive Overview Of The Global Geopolitics Of Oil And America's Energy Future, Cross-cutting Some Of The Biggest Security And Political Issues In World Affairs.^ Accessibly Written And Sharply Argued, The American Oil Boom Will Reframe Our Understanding Of The Most Politicized Commodity In The World-- Steve A. Yetiv, An Award-winning Expert On The Geopolitics Of Oil, Takes Stock Of Our New Era Of Heightened Petroleum Production And Sets Out To Demolish Both The Old Myths And Misconceptions About Oil As Well As The New Ones That Are Quickly Proliferating-- 1. Introduction: The Nexus Between Oil And Security -- I. Oil Markets, Politics And Prices -- 2. America's Oil Will Boom Will Substantially Lower Long-term Oil Prices -- 3. Saudi Arabia Is An Opec Oil Price Dove -- 4. U.s. Presidents Can Influence Oil And Gasoline Prices -- Ii. The Geopolitics Of Oil -- 5. More American Oil, Less Persian Gulf Intervention -- 6. Oil Supply Disruptions Are Really Threatening -- 7. America's Oil Consumption Is Only A Drag -- Iii. The Costs Of Oil Use -- 8. Gasoline Costs What You Pay At The Pump -- 9. Big Oil Companies Dominate World Oil -- 10. The U.s. Oil Boom Should Erase Peak Oil Concerns -- Iv. Conclusions -- 11. Developing Comprehensive Energy Solutions -- 12. Conclusion: The Synergistic Strategy. Steve A. Yetiv. Includes Bibliographical References And Index. "The last decade has seen a far-reaching revolution in the oil industry, both in the US and globally. By some measures, America is on pace to become the world's biggest oil producer in the next decade, an outcome that was inconceivable just a few years ago. But does this shift mean that the US will no longer be beholden to foreign autocrats? That prices will go down for consumers? That the global oil supply is less susceptible to shocks? In The American Oil Boom, Steve A. Yetiv, an award-winning expert on the geopolitics of oil, takes stock of our new era of heightened petroleum production and sets out to demolish both the old myths and misconceptions about oil as well as the new ones that are quickly proliferating. As he explains, increased production in the US will not lead to a reduction in prices, in part because oil is globally traded and OPEC will defend against low prices. America will not intervene less in the Persian Gulf just because it is producing more oil domestically. Saudi Arabia is less willing or able to play global gas pump to the world economy than in the past. Building an electric car industry does not mean that consumers will buy in, but neither is it true that a broad shift toward eco-friendly cars will have very little impact on greenhouse gas emissions. Most importantly, raising the level of domestic production will never solve America's energy and strategic problems, and may even worsen climate change, unless it is accompanied by a serious national and global strategy to decrease oil consumption. These are just some of the myths that Yetiv takes on in this panoramic account. This is not just an exercise in myth-busting, however; it's also a comprehensive overview of the global geopolitics of oil and America's energy future, cross-cutting some of the biggest security and political issues in world affairs. Accessibly written and sharply argued, The American Oil Boom will reframe our understanding of the most politicized commodity in the world"-- Provided by publisher The last decade has seen a far-reaching revolution in the oil industry, both in the US and globally. By some measures, America is on pace to become the world's biggest oil producer in the next decade, an outcome that was inconceivable just a few years ago. But does this shift mean that the US will no longer be beholden to foreign autocrats? That prices will go down for consumers? That the global oil supply is less susceptible to shocks? In Myths of the Oil Boom, Steve A. Yetiv, an award-winning expert on the geopolitics of oil, takes stock of our new era of heightened petroleum production and sets out to demolish both the old myths and misconceptions about oil as well as the new ones that are quickly proliferating. As he explains, increased production in the US will not lead to a reduction in prices, in part because oil is globally traded and OPEC will defend against low prices. America will not intervene less in the Persian Gulf just because it is producing more oil domestically. Saudi Arabia is less willing or able to play global gas pump to the world economy than in the past. Building an electric car industry does not mean that consumers will buy in, but neither is it true that a broad shift toward eco-friendly cars will have very little impact on greenhouse gas emissions. Most importantly, raising the level of domestic production will never solve America's energy and strategic problems, and may even worsen climate change, unless it is accompanied by a serious national and global strategy to decrease oil consumption. These are just some of the myths that Yetiv takes on in this panoramic account. This is not just an exercise in myth-busting, however; it's also a comprehensive overview of the global geopolitics of oil and America's energy future, cross-cutting some of the biggest security and political issues in world affairs. Accessibly written and sharply argued, Myths of the Oil Boom will reframe our understanding of the most politicized commodity in the world. Cover 1 Myths of the Oil Boom 4 Copyright 5 Contents 6 List of Figures 8 Acknowledgments 10 List of Abbreviations 12 1 Introduction: The Nexus between Oil and Security 14 I Oil Markets, Politics, and Prices 26 2 America’s Oil Boom Will Substantially Lower Long-Term Oil Prices 28 3 Saudi Arabia Is an OPEC Oil Price Dove 48 4 US Presidents Can Influence Oil and Gasoline Prices 64 II The Geopolitics of Oil 76 5 More American Oil, Less Persian Gulf Intervention 78 6 Oil Supply Disruptions Are Really Threatening 98 7 America’s Oil Consumption Is Only a Drag 118 III The Costs of Oil Use 136 8 Gasoline Costs What You Pay at the Pump 138 9 Big Oil Companies Dominate World Oil 160 10 The US Oil Boom Should Erase Peak Oil Concerns 174 IV Conclusions 190 11 Developing Comprehensive Energy Solutions 192 12 Conclusion: The Synergistic Strategy 210 Notes 218 Index 266 1. Introduction: The Nexus Between Oil and Security I. Oil markets, politics and prices 2. America's oil production will lower long-term oil prices 3. Saudi Arabia is an OPEC oil price dove 4. US Presidents can influence oil and gasoline prices II. The Geopolitics of Oil. 5. More American oil, less Persian Gulf intervention 6. Oil supply disruptions are really threatening 7. America's oil consumption is only a drag III. The Costs of Oil Use. 8. Gasoline costs what you pay at the pump 9. Big oil companies dominate world oil 10. The US oil boom should erase peak oil concerns IV. Conclusions. 11. Developing comprehensive energy solutions 13. Conclusion: The Synergistic Strategy.