Abstract
Rapid technological advancements can make previously uneconomic resources and/or feedstock avail- able within significantly reduced timeframes. This can and will further transform the global energy landscape and moreover, will impact the mix of feedstock we use for energy provision and material production—the so-called Feedstock Curve. Herein, three current examples are assessed to illustrate that this restructuring has by far wider reaching implications: Firstly, we examine how uncon- ventional resources—mainly produced using fractured cracking techniques—have restructured the US energy landscape, are now fueling the US economic recovery and will impact the geopolitical balance. Secondly, we assess how unconventional resources could impact European energy security, the Crimean crisis and redirect global cash flows. Thirdly, we analyse the potential impact of so-called methane hydrates deposited off the shores of Japan on the energy transition of the Island nation and how they might impact its trade deficit and long-term economic outlook. Last but not least, we will present arguments that uncon- ventional resources, when regulated properly, may be a blessing for the environment. With these examples, this
Highlights
Not long ago, anyone who had mentioned that the United States would likely become energy independent or would have said that they could consider exporting fossil resources would have received roaring laughter
Main fossil fuel resources used to date were so-called conventional resources, substantial amounts of unconventional resources are adding to the feedstock curve
The technological advancements that enabled the production of unconventional resources, have had significant macroeconomic impact as they are likely to reduce the enormous trade deficit of the US and will improve the country’s macroeconomic outlook
Summary
Anyone who had mentioned that the United States would likely become energy independent or would have said that they could consider exporting fossil resources would have received roaring laughter. The narrowing of the differential between consumption and production of oil as well as gas, vide supra, will reduce the trade deficit, ease balance of payment issues and will affect foreign debt and credit rating of the United States [30] All this will free up resources to stimulate the American economy and technological advancements in unconventional resource production transformed the feedstock curve and the energy landscape, but are likely to fuel US economic recovery. As in case of the US, the trade deficit directly affects balance of payments, foreign debt and Japan’s long-term economic outlook In addition to this detrimental macroeconomic impact, industries that use natural gas as a feedstock and are energy-intensive are affected by imports of pricy resources and rising energy prices as costs of two input factors increase in a coupled manner. Here unconventional feedstock and the transformation of the feedstock curve could have significant political and economic implications
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