16 July 2012

Following on from our last posting concerning the positive outlook for the US economy (see The Dow v All Ords Conundrum) several more articles have appeared on the potential US energy revival. The Australian’s Washington correspondent Brad Norington notes in  “Shale revolution takes the world back to the future on fossil fuels” that the US could become entirely energy self-sufficient in 15 to 20 years. Even if this proves to be an over-statement of outcome, the implications for the US economy and US companies generally is hugely significant.

Harvard professor and former assistant US secretary of defense, Joseph S. Nye, points out in his article: “The crucial energy balance for  US and the world” that this strengthening of the US economy would enhance American power in a way that runs counter to the current view of the US in decline. Both articles are recommended reading.