Last Month, Platts “Capitol Crude” oil policy podcast sat down with George David Banks, executive vice president with the American Council for Capital Formation (ACCF), to discuss the ability of U.S. energy exports to bolster security relations between the U.S. and countries in the Asia Pacific, particularly China.
Banks noted that as U.S. production of crude oil continues to experience unprecedented growth, China’s energy independence continues to dwindle. In fact, EIA forecasts suggest a Chinese import gap of roughly 14 million barrels per day by 2040 or more than 70 percent of consumption of petroleum and other liquids.
“If you look at what’s happened in the United States and in China over the past 18 years, it’s a stark contrast. There’s growing dependence on foreign oil in China and a remarkable reduction on need for foreign oil in the U.S.”
Banks went on to highlight America’s opportunity to establish strong free trade on the global stage through its abundant energy resources, which could ultimately reduce tensions between the two world powers.
“The U.S. should be the champion of free trade. […]Plenty of energy supplies are out there but if countries start hoarding them for themselves, then it sets the stage for conflict. From a security perspective, when the U.S. thinks about energy policy and energy trade restrictions, it needs to think about the bigger picture.”
To listen to the full podcast, click here.
The interview comes on the heels of a white paper recently released by Banks and ACCF, Managing Pacific Rim Security Risks With U.S. Energy, that concludes antiquated U.S. energy policies are holding us back from aiding our allies who face significant energy security vulnerabilities.