Global Energy Stressors: Can Shale Save the World || Aug 6, 2026
The U.S. shale revolution transformed global energy, but that period of explosive growth is over. Existing pipelines and export infrastructure have reached capacity, meaning future output increases will take a bit of time.
With domestic electricity demand on the rise, U.S. exports will diminish over the coming years. That means America's ability to offset global energy disruptions is dwindling. Couple that with Asian countries paying premiums for the remaining U.S. LNG, and Europe's energy picture is only getting worse.
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Comments (14)
I had a previous comment regarding the use of small modular reactors, but I think it was hidden. Not sure why. At any rate, most/all US developers appear to be in disarray. Some bad business practices might be the cause. There is one US/Japanese (GE/Hitachi) that is active. It seems that China and Japan (Hitachi?) are the leaders in this field by far. I like SMRs because they are safer to operate and they are very flexible in their use. They don't seem to generate fissionable material (like plutonium) so aren't as destabilizing internationally. They would be ideal to power data centers. The delay on SMR significant availability seems to be at least 5 years and as much as 20. Hope this doesn't get hidden.
It's NOT hidden but rather, extremely expensive to produce w/o some form of government incentive such as China gives its SMR companies. Also, all the SMR companies such as Cameco, etc., ....saw how Chump pulled out the rug from alternative/renewable power/research companies in favor of "great and good clean coal" and "drill baby drill" and yet, curiously, fossil fuel industries get HUGE incentives from the US government! Still think critiques of Don the Con are blind hatred, bub? Penetrate more that the outer shell or one layer deep and you'll start to have your own St. Paul on the road to Damascus moment friend!
Peter consistently says that China imports 90% of its energy but other sources say it is more like 20-25% because of their self sufficient coal resources and increasingly renewables. Crude oil imports are more like 75% and natural gas is 40-45% imports How does Peter square these data points?
Off topic comment, but still relevant to the blog: Can you please go buy a noise cancelling mic?!?! I love the vista shots, I love you doing stuff out in nature. It annoys me to no end when your mic cuts out b/c you're a windy environment. Something like this would help IMMENSELY. https://www.amazon.com/dp/B0DFXQDTDT?th=1
Thanks for sharing your perspective with us Peter.
Thanks Peter, Canadian heavy crude and nat. gas could fill in some of the European short fall. We may now have a government in Canada who understands how the world economy works.
Well, one MP who happens to be the PM. He needs to jettison all of the Trudeau Sr to Trudeau Jr Liberals if anything is really going to change.
Boy sure looks like Putin's hand via Trump in all of this. The dismantling of monitoring institutions, consolidation of media and control, oligarchic giveaways - all the same Putin dismantling moves he made in Russia, duplicated here. Even as far as calling the Iran war, not a war - like Putin's SMO...
Never heard that so well put!
Definitely need to keep our foot on the gas for small modular reactors like the Ward 250. Plop electricity production down where we need it. Get rid of very high voltage long distance transmission (fewer fires, looking at you, PGE). Effectively self-contain power production at the point of use for data centers.
It seems you assume that domestic oil will only be used domestically. If China is paying more, domestic oil will go to China. Recent news reports state that Chevron and Exxon are making record profits now and fear the president will take action to stop oil companies from exporting oil. Require American oil to stay in America. The oil companies will not sell the products in America because “it’s needed to produce power for data centers”. They don’t care about need. They care about profit. As an aside, I’ve always considered the idea that oil produced on federal lands should be limited for sale in the domestic market. This would allow oil companies to make big profits exporting to the world market, but should result in cheaper oil, less profit in the US. Peter, I’m curious what you think about such a bifurcated system that should reduce price pressure of the work market for the domestic market. Also oil companies could operate on a credit system, so oil produced on federal land in Alaska would not be required to be transported to the lower 48 for example. The actual oil would not be limited, just the volume of production must be accounted for and offset.
I'd go for that and I'm a stockholder in both. However, amazingly, I don't see (as a stockholder) these gigantic profits either in my stock price or dividend distribution so some kind of scamming is going on! No surprise with Con Man at the helm. Where the hell is Rex Tillerson when you need him. LOL!!
And yet the Chinese, who are in the same boat of needing to import oil and gas, have done ok. Does this mean the Europeans will start to boost coal and nuclear the way the Chinese have? Maybe even use the Alps to produce more hydro?
Insightful, thank you 👍 higher energy prices is still a better problem than those countries that just won't have access at all