United States with the claims of dominating the energy market and also claiming to it irrespective of the market situations led the world to believe it is all set to make a huge impact on the energy sector. But what is the reality in field??
Amongst these claims from the United States last week, on Saturday 14th September Saudi Arabian oil rich territories were attacked by drones and Yemeni Houthi rebels backed by Iran took the responsibility for the attack. With this attack the supply chain of the oil markets was disrupted as expected by the market analysists as the oil that came from those Saudi Arabian regions was amounting to as much as 10 percent of market share, and no other nation can fill in the gap even though many claimed to do so. Largest share of energy consumption in the United States is of Fossil fuels. In 2018, about 79% of domestic energy production was from fossil fuels, and 80% of domestic energy consumption originated from fossil fuels. United States claimed that their oil abundance will cushion the disruption caused by the Saudi attacks but as the oil prices depict there is no such cushioning from the united states market. This shows that United States’ claims to be energy independent but as we see it is not and neither the nation can alone do the diplomacy for the Abqaiq attack.
American energy dominance likewise does not mean the United States can retreat from global cooperation. The use of strategic oil reserves, for example, is more effective when done collectively with other nations. The United States created the SPR as part of an agreement among nations in the International Energy Agency to hold strategic oil reserves that could be released in coordination. When Trump tweeted that he had authorized the use of the SPR “if needed,” he thus undermined the potential impact of a stock release by acting unilaterally.