How does geopolitics affect energy law: North America—an illustrative example

Abstract

Abstract Global energy trade has changed over the last decade. Increased energy flows to Asia present a major shift in energy trade as Asia’s share of global energy demand rises. The shale revolution has enabled the United States (U.S.) to become the world’s largest oil and gas producer accounting for more than half of the world’s production. Renewable energy sources have become more important as countries are challenged to meet the climate goals set by the Paris Agreement. Nuclear Energy seems to be the energy source that can most dramatically help reducing carbon emissions rapidly. Gas demand will grow rapidly over the next 20 years as countries move to decarbonize their energy matrix, given it is a cleaner fuel for power generation than coal. The purpose of this article is to show the effects of global energy trade, its effects on the way countries interact with each other and how local energy law and policy are nonetheless affected by the shifts in the energy market. We will use North America (Canada, Mexico and the U.S.) as an example of the complexity of such interactions and the effects is having (or should have) in regional energy markets. The purpose then of this article is not to attempt to resolve these complex issues, but rather to motivate readers, energy lawyers and policymakers to start asking the right questions regarding global (and local) energy trade.