Elevated Expectations: India Under Modi

Narendra Modi sworn in as Prime Minister of India. May 27, 2014. (Narendramodi/Flickr Commons)

On May 26, 2014, Narendra Damodardas Modi was sworn in as India’s 15th Prime Minister. In his inaugural address, he outlined India’s “shining” future under his command. But, not all are convinced. His role as a Hindu Nationalist and leader during the 2012 Gujurat riots, which claimed the lives of over 1000 Muslims, leaves many skeptical of his agenda. I posit, however, that despite his past and potential shortcomings, Modi’s leadership will be a boon for the country and the region.

Modi won the national elections in a landslide partly due to his successes as Chief Minister of Gujurat (a position he retained for 13 years). Under Modi’s leadership, Gujurat became an economic powerhouse. Although the province accounts for only 5% of India’s population, it produced 16% of the entire nation’s industrial output and 22% of its exports. While the rest of the nation’s economy stagnated, Gujurat’s economy boomed, winning praises from business leaders and politicians alike. Modi’s pro-business stance brought, among other benefits, electricity to nearly every village in his province. To the common man’s eye, Modi was a politician who ‘got things done’.

Modi’s prime ministerial campaign – which embodied his energetic style – brought these local successes to the national spotlight. Over six weeks, he travelled over 200,000 miles and spoke at 500 rallies. He appeared at 800 more as a live hologram, solidifying his reputation as a tech-savvy, modern leader. Ultimately, Indians believed in Modi: a record 66% of citizens—urban and even rural, once the Congress Party’s electoral stronghold—voted in his favor.

Modi’s success can also be read as the Congress Party’s failure. The Gandhi family focused their campaign on ‘stopping Modi’, rather than promoting their own agenda. Yet, even if they had, victory was unlikely. Voters were tired of the high inflation rates, stagnant growth, ineffective leadership and corruption that defined the pro-Gandhi administration. Modi’s predecessor, Dr. Manmohan Singh, left office with his tail between his legs.

Though Modi won, a contingent of detractors believes that he, like other Indian politicians, has no substance. The Times of India published an article in late 2012 highlighting his “ten broken promises” that were made ahead of the 2007 state election. Despite public criticism, Modi kept his seat then and won the Prime Minister seat this month. The validity of these claims is now irrelevant, for the electorate has made its decision. The real question is what future Modi will bring for India.

Businessmen are heavily expecting a prosperous one. On May 22, after election results were known, the Indian stock market shot up into the top 10 of the world, surpassing Australia. The MNI (Market News International) India Business Indicator shows that ‘business confidence’ reached an all-time high this May, as the country began eagerly preparing for what it anticipates will be an economic boom.

The expectations of India’s general populace are, unsurprisingly, exceptionally high for Modi. His leadership style, I suspect, will be direct and decisive—a welcome improvement over Manmohan Singh’s decidedly quiet and ineffective one, which left the nation to the whims of corrupt officials. Yet, a potentially authoritarian, right-leaning and religious nationalist does lead one to wonder about India’s relationship with Islamic neighbor and long-time rival, Pakistan. Surprisingly, however, tensions seem to be easing gradually. Modi offered Pakistani Prime Minister Nawaz Sharif an invitation to the inauguration, and Sharif accepted. The two later met and even agreed to begin trade normalization talks. As a gesture of goodwill, Pakistan released 151 Indian fishermen imprisoned for unknowingly crossing the border; the Sri Lankan government quickly followed suit.

Narendra Modi met with Pakistan’s Prime Minister, Nawaz Sharif (right) at his inauguration. May 27, 2014 (Narendramodi/Flickr Commons).

Caption: Narendra Modi met with Pakistan’s Prime Minister, Nawaz Sharif (right) at his inauguration. 2014. (Flickr Commons/Narendra Modi)

Modi’s rhetoric to and concerning Pakistan also seems to send a clear message to the US and the West. In a recent interview, Modi suggested that India and Pakistan could face the enemy of poverty together if the two nations can establish mutual trust. Additionally, a new relationship is possible if Pakistan can effectively stop harboring terrorists. In both statements, Modi appears to suggest that India can manage Pakistan on its own. Furthermore, Modi hinted at a shared strategic objective between India, Pakistan and the US to reduce terrorist activity in Pakistan. Thus, US-India relations should only improve in the coming years. Modi’s pro-business, pro-foreign investment stance should not only bolster the Indian economy, but also invite more US companies to take advantage of untapped markets and decreasing economic protectionism.

Narendra Modi’s reputation is one of an uncorrupted and effective domestic leader who seems already able to navigate the international arena. His past is, admittedly, somewhat spotty and his relationship with the Hindu Nationalist group, Rashtriya Swayamsevak Sangh (RSS), somewhat concerning. Yet, the Indian public has elected to move past this in hopes of gaining a leader who will prioritize development over cronyism. Modi has raised expectations, promising anti-corruption efforts, modernization and good governance. He must deliver on his promises and fulfill these expectations, for if he fails, the dreams of millions of people will be shattered and the nation will be left lost.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff and editorial board.

A New Grand Strategy for a Changing World

American political thinkers en masse have not engaged in meaningful debates on American grand strategy since George H. W. Bush’s proclamation of the ‘New World Order’ in the early 1990s. There have been sincere yet misinformed attempts to change America’s role, including the globalization prophets of the Clinton years, the Terror Warriors of the Bush years, and the liberal re-setters of the Obama years. However, no major faction of thinkers has articulated a practical and influential foreign policy capable of protecting America and the liberal international order in our changing world.

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The reverse side of The Great Seal of the United States. ‘Novus Ordo Seclorum’ is Latin for ‘New World Order,’ the main theme of George H. W. Bush’s successful foreign policy. This order has been called into question in recent years. September 20, 2009 (U.S. Public Domain/Wikimedia Commons)

Remodeling America’s grand strategy will be difficult. In the near future the necessary lights will return to the foreground and shape the debate towards the best possible ends. At the moment, though, it would be beneficial to examine what coming paradigm shifts may look like to prepare us for the shock.

First, the supposedly transcendent norms of democratization and liberalization that swept the globe and led to a new world order over the last two decades are, in fact, not false illusions, but rather social and political constructions whose dissemination has been made possible only by the geopolitical situation of the Post-Cold War world. American hegemony, an interconnected international economic order focused on the United States, Europe, and China, the political bankruptcy of Communism, and the lack of dominant powers in any of the non-North American regions of the world created an environment wherein general interstate peace, the deepening of trade flows between the world’s major economic hubs, the spread of Western-encouraged democratization and liberalization, and multilateralism as standard diplomacy seemed to be basic forces of history rather than historically-contingent phenomena. The success of internationalism and American ideals blinded American political players to some of the unfortunate realities of international political life.

The global geopolitical situation has certainly changed over the last two decades, particularly with the assertiveness of China and the adventurism of Russia over the last six years. The resurgence of other political and economic centers of power, particularly in Russia, China, and Iran, and to a lesser extent India and Japan, has threatened American hegemony. Economic troubles in the US, Europe, and Japan, coupled with resurgent economic nationalism, have stalled the progress of the global commercial and financial order, proving globalization to be a double-edged sword. The ugly offspring of ‘democracy’ in Egypt, Libya, Myanmar, Pakistan, and other developing nations, as well as the local mutation of American-style liberalism in East Asia, Latin America, and even Western Europe of all places, have threatened formerly ‘universalist’ liberal values. Russia’s forays into Georgia and Crimea, China’s posturing with Vietnam, the Philippines, and Japan, and Iran’s manipulation of the situations in Syria and Iraq have brought the phantasmal ideals of perpetual peace, the triumph of multilateralism, and the end of interstate war to an ironic stalemate.

Moreover, innumerable trends in areas beyond the economy and politics are demanding a fundamental rethinking of how we manage foreign policy. Exponential technological advancement in fields as diverse as information technology, biotechnology, communications, energy, transportation, and manufacturing are restructuring societies, militaries, and economies. The ‘New Medievalism’ – a localization of many political units and the transition of duties formerly embraced by the state to various non-state actors such as corporations, non-governmental organizations, stateless nations, cartels, and insurgent groups – has resulted in a new anarchic political dynamic that cannot be managed by traditional statecraft alone. Environmental change, demographic shifts, and other unpredictable historical forces will continue to shape international and domestic politics in the coming decades.

How can the principles of liberal world order, American pre-eminence, and the balance of power be maintained in a world where increasingly assertive regional powers bolster their presence along their frontiers while developing societies crumble in the face of insurmountable domestic odds?

To start, the United States should determine whether or not maintaining the balance of power in every critical region of the world is feasible. Preventing the Russians from dominating Eastern Europe, the Iranians from intervening in the Greater Middle East, and the Chinese from bullying East Asia has certainly kept America the predominant power in those regions. At the same time, it has cost America blood and treasure, alienated three potential partners, and prevented those states from crafting local political orders that might be far more effective at stymying anarchy than the internationalist pretensions of the Western elite, who are proving to be far too incompetent at handling their own problems to be trusted with the affairs of others.

Balancing the Indians and Pakistanis, the Iranians and Israelis, the Japanese and the Chinese, and the Russians and the Europeans has perpetuated regional rivalries and conflicts and prevented the emergence of other hegemons. These rivalries serve America’s strategic interests in preventing the rise of challengers, but in light of present shifts in the balance of power, it is not clear whether the United States has the resources or will to perpetuate such situations and serve as the global lever. While allowing the emergence of regional hegemons is nowhere near ideal, it may be worthwhile to have go-to strongmen in the world’s critical regions who would be, if not dependable, at least predictable. Such a global concert system, populated by regional leaders as Germany, Russia, China, Iran, Turkey, Japan, and Brazil, and maintained by the United States, would certainly provide a more orderly international system than the vaguely law-based equality of all states existing on paper today.

Geopolitics South Russia

This geopolitical map of the South Russian frontier depicts some of strategic movements the Russians have been making in recent years. March 6, 2014 (Spiridon Ion Cepleanu/Wikimedia Commons)

Now, it may be worthwhile to stymie potential challengers. But if current political, economic, and demographic trends are to be trusted, it appears that this will ultimately be a futile endeavor, as developing nations transition into middle-class economies, their subsequent power may be too much for us to keep in check, and our attempts at policing will certainly invite contempt.

America would benefit from maintaining a liberal world order through control of the seas and dominance in military and economic might wherein fellow developed nations would come to the table, manage their own affairs, solve mutual problems, and generally strive to keep order around the world. American values could be promoted, but it would not be wise to export them and seek to impose them on our fellow states. And if the world trended towards war, it would be far easier to manage such a crisis in a world of developed states with mutual understandings, rather than a polarized world of the decadent West and the resurgent rest.

The international system is presently enmeshed in a period of great stress and tension, and a new method of thinking about politics will have to conquer the decadent contemporary orthodoxy. The statesmen of the future must engage in these discussions and seek dynamic and creative solutions – the fate of our nation demands nothing less.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff and editorial board.

Over the Top: the Emergence of Arctic Ocean Trade

The view of the world from the North Pole is not a common perspective. Most of us may only recognize it from the white-on-blue flag of the United Nations. However, this view of the world may become increasingly common as climate change opens new opportunities for Arctic trade routes. Scientists predict ice-free summers in the Arctic Ocean by the end of the decade and navigable winters by the mid-21st century. Regardless of how one may feel about environmental politics, the question of the polar caps melting is not one of “if” but “when.” The opening of these trade routes is of particular interest to certain actors and nations and has the potential to change the face of global trade.

Polar Routes

The Polar Paths for Shipping (via The Globe and Mail)

A dream of the 17th century explorer Henry Hudson, the fabled Northwest Passage over Canada was first navigated in 1906 by the Norwegian Roald Engelbregt Gravning Amundsen. The other Arctic Sea route, the Northeast Passage over Russia’s northern coast, more commonly called the Northern Sea Route (NSR), is a Russian-legislated shipping lane. The Russian Federation has already started developing infrastructure to service the NSR. Between 2009-2013 maritime traffic has improved from a handful of vessels to several hundred per year. While most are vessels conducting research, several trade voyages have been made. Thus far, Norway and Russia have been the primary navigators. However, in the past few years, Chinese shipping giant COSCO has turned its eyes northward. This past fall, COSCO’s Yong Sheng became the first container-transporting vessel to make a journey from Dailan to Rotterdam via the NSR. Huigen Yang, Director General of the Polar Research Institute of China, announced in 2013 that as much as fifteen percent of China’s maritime trade may travel via the NSR by 2020.

Most data estimates suggest that roughly 90% of mercantile trade is maritime. For China, the potential of Arctic routes could represent savings in the magnitude of hundreds of billions of dollars. According to Qi Shaobin, a professor at Dalian Maritime University: “Once the new passage is opened, it will change the market pattern of the global shipping industry because it will shorten the maritime distance significantly among the Chinese, European and North American markets.” Moreover, China’s traditional route to European ports passes through pirate-infested waters that the Arctic Route would bypass.

There is an undeniable economic advantage to Arctic Trade Routes that connect China to both Europe and the East Coast of the United States. Currently, the typical shipping time from Shanghai to Rotterdam is 25 days, Shanghai to Los Angeles is 13 days, and Los Angeles to New York is seven days by rail. Rotterdam to New York is another nine-day sail. However, a Northern Sea Route to Rotterdam from Shanghai would shorten the journey to 10 days, making a sail from Shanghai to New York via Rotterdam last only 19 days. Without any time lost with stopovers and putting cargo on rails, the current route to New York from Shanghai is twenty days, an Arctic route would be nineteen days at most.

Northern Sea Route vs Southern Sea Route

A visual comparison of the NSR (Blue) to the Suez Route (Red). The Northern Sea Route is 40%, or 12-15 days shorter than the traditional Suez route (Wikimedia Commons)

Commercial traffic over the Arctic would most profoundly affect the maritime route through the Suez Canal. Ports along the Suez route would see reduced cargo traffic from China to Europe. Singapore, one of the busiest ports along the route, has already signaled its awareness of this threat by applying for permanent observer status in the Arctic Council, a regional governance institution. Singapore isn’t the only observer nation that seems out of place in Arctic Council. China, France, Germany, India, South Korea, Italy, Japan, Netherlands, Poland, and the United Kingdom – many of the world’s largest economies – are also permanent observers.

As the Arctic’s pristine environment becomes accessible, commercial shipping is not the only encroaching human activity. Reduced sea ice is making an estimated 30% of the world’s natural gas and 15% of the world’s oil accessible. The combined potentials of Arctic shipping and resource extraction may tilt the scale in favor of developing economic infrastructure over environmental preservation in the Arctic. Professor Lassi Heininen, an expert in Arctic issues at the University of Lapland, describes this problem as a paradox by which less sea ice means better access and thus more human activities, which leads to less ice. Professor Heininen stressed the question: “Are we willing to lose the Arctic’s beauty, or do we try to keep it for our grandchildren?”

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“Are we willing to lose the Arctic’s beauty, or do we try to keep it for our grandchildren?” A baby Polar Bear at Ranua wildlife park in Finland. June 2012 (Photo by the author)

The Arctic region is governed by a combination of international agreements including the UN Convention on the Law of the Seas (UNCLOS) and multilateral governance institutions such as the International Maritime Organization (IMO), a UN agency, and The Arctic Council (AC). The AC is comprised of the eight nations that intersect the Arctic Circle: the United States, Canada, Russia, Norway, Finland, Iceland, Sweden, and the Kingdom of Denmark (by virtue of Greenland). In recent years, the AC has passed agreements on search and rescue protocols and the IMO is finalizing a shipping ‘Polar Code‘ that is expected to be codified by 2016.

Infrastructure is still the key obstacle to the expansion of trans-Arctic trade. There are few ports in the Arctic and they are critically underdeveloped. Missing too are extensive maritime charts as well as search and rescue capabilities. While the AC has passed a search and rescue agreement for cooperation between Arctic States, investment in these capabilities remains minimal. Icebreakers are expensive and the largest fleets number in the tens. Additionally, maritime laws and insurance standards in the draft of the IMO’s Polar Code need to be finalized before any substantial shipping would occur.

Thus far, Russia has been the only player to make significant commitments to development by reopening dormant research stations and Arctic ports. Canada has done little aside from accepting a legal framework for multilateral cooperation on paper. Notwithstanding, there has been an increase in maritime activity through Canada’s Arctic waters:

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Recorded Northwest Passage Transits 1903-2013 (via Globe and Mail)

Gustaf Lind, the Swedish ambassador to the AC, accepted the possibility of Arctic Ocean trade. But, he noted: “I don’t think we will see much shipping for quite some time.” Mike Keenan, an economist at the Port of Los Angeles, explained: “You need long stretches that are regularly free of sea-ice and right now you don’t have that.” With regard to how a port can respond to the dramatic effects of climate change, Keenan continued: “there’s a limit to what [the port] can do if you have a serious time advantage…the priority should be to focus on climate change and sea level rise.”

Perhaps it is too early to quantify the effect of Arctic Sea Routes on global shipping trade. Polar Codes and Arctic governance institutions can provide limited solutions to the challenges facing the Arctic, a region on the front line of climate change. What is clear is that climate change will affect more than global weather patterns. It will have an impact on all human activities. Understanding these changes and ensuring that governments address the fundamental problem of a changing environment is ultimately the best way forward.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff and editorial board.

Unlocking America’s Potential Energy

United States Shale gas plays, May 2011

Map of U.S. shale gas plays. May 2011, U.S. Energy Information Administration (Wikimedia Commons).

America is in the midst of one of the most significant energy revolutions in modern history. Due to the recent discoveries of vast reserves of shale oil and natural gas, the U.S. is in a position to become the world’s largest energy producer by 2015, surpassing both Saudi Arabia and Russia – combined. This momentum, however, can only continue if U.S. firms are allowed proper flexibility to explore, extract, and export shale oil and natural gas from U.S. territories. Government regulations covering drilling practices, such as fracking, must be re-examined and equitably altered such that energy companies may pursue their energy interests while satisfying environmental concerns. The energy revolution has critical implications for U.S. domestic and foreign policy with the potential to transform America’s economic prowess and energy self-sufficiency for years to come.

Current estimates for America’s resource endowment and extraction rates are very promising. Natural gas production is experiencing a momentous boom due to recent breakthroughs in unlocking natural gas trapped in shale. With these advances, shale gas production is forecast to increase from 42% of total U.S. gas production in 2007 to 64% in 2020. This level of growth is unprecedented, with the U.S. Government estimating there will be a 44% increase in total shale natural gas production from 2011 to 2040. With regards to oil production, the International Energy Agency predicts that U.S. oil production will rise to 11.6 million barrels per day in 2020, up from 9.2 million just a few years ago. This increase in oil production is orthogonal to trends in Saudi Arabia and Russia, which will see their production levels decline from 11.7 million to 10.6 million barrels and from 10.7 million to 10.4 million barrels, respectively. Leonardo Maugeri at Harvard has estimated that shale oil production alone could reach 5 million barrels per day by 2017. These statistics stand as a dramatic reversal from discussions in the energy community even 5 years ago when talk focused on declining fossil fuel reserves and the need to explore alternative forms of energy. Fossil fuels now dominate the energy game, and rightfully so.

Natural Gas Production from US Shales 2000-2013

Graph of natural gas production for U.S. shale plays. September 16, 2013 (Wikimedia Commons).

While sound environmental concerns do exist regarding shale oil and natural gas extraction, such as pollution of groundwater and the effect of mining towns on surrounding communities, they are often overblown. For example, in Pennsylvania only 3% of all wells were cited for flawed construction from 2008-2013. Fracking has been a successful extraction method since 1940, and new technologies – waterless fracking is a good example – have only made the process safer and more efficient. The most legitimate environmental concern associated with fracking has to do with the well casings that surround the fracking apparatus. Since fracking pumps water and sand into the ground at a high pressure, improperly made well casings and other sealants can crack causing leaks which pollute the surrounding environment. This problem could be solved by using stronger and properly fitted well casings. Simple environmental regulations at the state level requiring proper well construction, specifically emphasizing casings, could ameliorate many of the environmental concerns associated with fracking. There is also a surprising lack of publicly available data regarding the effects of fracking operations on the surrounding environment. Increasing the availability of this data by setting mandatory reporting requirements would fully inform nearby communities and government authorities. Fracking to extract shale oil and natural gas can be done safely; such has been the trend thus far. If a more relevant, simple, and fair regulatory regime were to be established by state governments, and perhaps the federal government, to address issues such as well casing construction and reporting requirements, fracking’s safety and efficacy would only be further reinforced. Regardless, fracking – as it stands today – is a no-brainer.

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Fracking Site in Warren Center, Pennsylvania. August 23, 2013 (Wikimedia Commons).

Why is fracking already a no-brainer? Because the shale boom, which has been enabled by fracking methods, is having tremendous economic benefits for the U.S. Natural gas prices in the U.S. are some of the lowest in the world – half the price of gas in Europe and less than one-third the price of gas in Asian countries. Surging shale oil extraction has overloaded Gulf refineries and revived East Coast refineries. This increased supply is so shocking that domestic oil prices have lately fallen out of sync with global oil prices, and experts predict a U.S. oil “glut” if U.S. firms are not allowed to export crude oil. This abundance has critical implications for manufacturing in the U.S. Indeed, The Economist claims that the energy revolution is resulting in a “Factory North America.” This “Factory” is resulting in more domestic jobs across all industries, especially in the growing energy industry. Energy jobs in nearly every state have doubled since 2005. Some equate the fracking boom as being similar to a gold rush, with energy jobs offering high salaries for basic work in rural areas. David Petraeus seems to be on track when he claims we are about to enter the “North American Decades” powered by our new-found energy endowments.

While the macroeconomic benefits of America’s increased energy output are clearly tremendous, expectations for the average American consumer should be tempered. Though the price of natural gas has fallen in recent years due to our ability to tap into previously inaccessible shale reserves, the cocktail of booming transportation, a recovering economy, and rising exports have raised prices in the past year. In addition, the need for further fracking R&D is likely to drive costs up in the coming years. Shale oil is experiencing a similar phenomenon. Although the price of gasoline has fallen beyond global pricing levels in the U.S. for the short-term due to surging supply, the price of oil is determined on a global energy market and is projected to increase for the long-term as global demand continues to increase. The increased supply of natural gas and oil certainly has lowered costs for the American consumer for the time being, and will continue to do so when contrasted to an America without new-found energy reserves. However, Americans should not be expecting $2.00 per gallon gasoline prices anytime soon.

So what does this energy revolution mean for U.S. foreign policy? Many good things. America’s increased self-sufficiency will change the U.S.’ relationship with many other countries. Because of surging domestic supply, the U.S. will be less dependent on other nations for energy; in turn, this freedom will afford the U.S. greater flexibility in pursuing foreign policy interests because it will not be as constrained to secure energy resources abroad. Strategic relationships with nations such as Saudi Arabia and the United Arab Emirates are likely to change because there will be less of a need for their oil imports. Perhaps the U.S. will now be more forceful in advocating for democratic reforms within these non-democratic states now that it has greater autonomy on the energy front. In addition, the decreasing need to secure energy resources abroad may prevent the U.S. from becoming involved in regional disputes and conflicts to secure those interests.

America’s surplus of energy could also be an excuse for a more active role in foreign policy. America could gain more influence over other nations if U.S. firms are allowed to export energy resources. As we have seen in Europe, Russia’s domination of energy resources in Eastern Europe has enabled it to turn build new allegiances at the EU’s loss and expense. Consider the notable cases of Armenia and the Ukraine becoming part of Russian-led Eurasian Union. Please note that this author is not advocating for the U.S. to pursue an overbearing approach to energy exports like Russia, but rather a stable level of influence to help the U.S. realize its foreign policy objectives. If, for example, the U.S. could export to Central Asian states, it could gain more influence in the region and build a relationship that could allow these states to become closer to the West rather then being forced into a Eurasian Customs Union led by Russia. In a state like Japan, where natural gas sells for $17 compared to $3 in the U.S., greater exports from the U.S. could enhance a trade relationship with a major partner. Unfortunately, the U.S. is not reaping the benefits of energy exports because antiquated laws are in place that prohibit U.S. firms from exporting crude oil. In addition, the EPA has been very slow to grant export license requests for liquefied natural gas. These regulations are contrary to free market principles and concepts of free trade that America has advocated for since its inception. The U.S. government needs to allow U.S. firms to export and pursue their global energy interests more freely. The potential results of this policy change would provide more flexibility in U.S. foreign policy and would afford the U.S. even greater influence on the international stage.

Natural Gas Price Comparison

Comparison of natural gas prices in the United States, Japan, and the United Kingdom. September 30, 2011, U.S. Energy Information Administration (Wikimedia Commons).

This energy revolution will change America’s game, and for the better. Domestically, the U.S. will be more self-sufficient and experience the growth of an industry while boosting employment numbers (and therefore jobs) and observing lower energy prices. Internationally, America’s influence will extend to the importers of our energy, and there will be less dependency on other states for energy. These benefits, however, cannot be fully experienced under the current structure. State governments, and perhaps the federal government, need to formulate a simple and fair regulatory regime that will allow U.S. energy firms flexibility in fracking to unlock shale oil and natural gas while addressing legitimate environmental concerns such as well casing construction. The U.S. must also break its own barriers to exporting energy, such as the obsolete laws that currently prohibit U.S. firms from exporting crude oil from U.S. territory and the slow process of obtaining export licenses for natural gas. Only if these policy measures are implemented can America’s full energy potential be unlocked.