Global Economics and the Energy Policies in the US - Essay Example

Economics Inserts His/Her Inserts Grade Inserts 15th November, Overview The global economy has undergone hard times in recent times and the United States of America has not been spared. However, good news is coming out of the region after it was recently discovered that the country could become the largest oil producer by the year 2020. This is optimistic news as seen by a recent article titled, ‘Saudi America’, where oil production in the US was discussed. Oil and gas production in the US has been on the increase and this has been attributed to the technological development and funding through private capital.

The use of horizontal drilling and fracking has helped the US produce energy from shale deposits that were once considered as unconventional deposits (Wall Street Journal, 2012, 1). Based on reports the real energy revolution lies here unlike the much touted green energy being sold by the US government. President George W. Bush administration had the solution of investing in new green technology in the production of energy. Although the strategy did not yield a lot of results, Obama’s administration did double spending on these forms of energy without much success.

The energy policies adopted by the UK government over the years have been on green energy which only contributed to increased energy costs. Energy production is set to change in the future and the United State will lead the revolution. This change is massive and it cannot be easily stopped by anyone including environmentalists since technology and demand have changed over the years. Despite the fact that fracking contributes to decreased emission levels compared to old energy sources such as coal.

The deployment of horizontal drilling and hydraulic fracturing (fracking) has created a potential for unconventional oil deposits from shale to be tapped. Most government are opposed to this technology and imposed restrictions on the use of the technology (Wall Street Journal, 2012, 1). Countries like France and the UK are among the countries that can be oil sufficient yet they continue to adopt costly and ineffective green energy. The presence of technology and resources such as Shale should give a boost to countries to bring about an energy revolution.

Politicians being the decision makers should be among the first people to adopt the changes in the oil industry. For instance, in the United States the Obama administration should support the new revolution instead of imposing federal restrictions. Politicians have a tendency of taking credit for successes they were not involved in envisaging or supporting. Take Obama for instance; who took credit for the fracking technology even though his administration did not support the technology. The US government and politicians should be aware that history will judge them harshly if they pumped money on green energy revolution that had not results to show.

Yet, they would have supported a better way of tapping fossil fuels that would have revolutionized the energy industry. United States and global politicians are being called upon to stop wasting time and funds waiting for the technology to work before backing it (Wall Street Journal, 2012, 1). A good example of a leader who works for the interest of the industry is newly elected Senator Heidi Heitkamp of North Dakota who has realised the power to gain from use of fracking technology. Work Cited Wall Street Journal.

"Saudi America: The U.S. will be the worlds leading energy producer, if we allow it.”Wall Street Journal. N.p., 13 Nov. 2012. Web. 14 Nov. 2012. http://online.wsj.com/article/SB10001424127887323894704578114591174453074.html.