Publications: Notes at the Margin

It's Halftime in America (February 20, 2012)

 

The 2012 Super Bowl ad titled "Halftime in America" closed with the words, "Yeah, it's halftime, America, and our second half's about to begin." We adopt this theme in this week's report to characterize the energy revolution that is rapidly gaining momentum. As astounding as it sounds, the United States may become independent of energy imports by 2023, the fiftieth anniversary of President Nixon’s call for US energy self-sufficiency through “Project Independence.”

 

The coming change will be so dramatic that America’s trade deficit may shrink substantially—or even turn into a surplus—in the country’s second half. Furthermore, the increase in oil production from offshore fields and unconventional sources may become a surplus, requiring the United States to once again become an oil exporter, as fanciful as this might seem. Under these circumstances, the country will want to consider joining with other energy-exporting countries to sustain high prices. Such an effort would support domestic oil and gas production and give the United States a real competitive advantage over countries forced to pay high prices for imported energy—nations such as China, European Union members, and Japan. This could be some second half for America.

 

To request subscription information for Notes at the Margin, please Contact Us or send us an Information Request.