Slides from talk given at Cato Institute on May 1, 2015. "National Security Implications of New Oil and Gas Production Technologies". Video of the remarks is at https://www.youtube.com/watch?v=x-BpRNG5Wic.

1. black gold
Cato Institute | National Security Implications of New Oil and Gas Production Technologies | May 1, 2015

7. Solow (1957)

8. “The region which is now threatened by
Soviet troops in Afghanistan is of great
strategic importance: It contains more than
two-thirds of the world's exportable oil…
“Let our position be absolutely clear: An
attempt by any outside force to gain control of
the Persian Gulf region will be regarded as an
assault on the vital interests of the United
States of America, and such an assault will be
repelled by any means necessary, including
military force.”
—President Jimmy Carter, January 23, 1980

10. “For the sake of our economy, our security, and
the future of our planet, I will set a clear goal as
dependence on semiconductors from Asia. “
Senator Barack Obama, August 29, 2008

11. “For the sake of our economy, our security, and
the future of our planet, I will set a clear goal as
dependence on potatoes from Canada. “
Senator Barack Obama, August 29, 2008

12. “For the sake of our economy, our security, and
the future of our planet, I will set a clear goal as
dependence on grapes from the Chile. “
Senator Barack Obama, August 29, 2008

13. “For the sake of our economy, our security, and the
future of our planet, I will set a clear goal as
dependence on oil from the Middle East. “
Senator Barack Obama, August 29, 2008

15. “[U.S.] imports have decreased substantially, reducing the
funds we send overseas [and] reducing our vulnerability to
global supply disruption and price shocks.”
—2015 National Security Strategy of the United States
“Spikes in oil prices are correlated with recessions in the
United States …”
—Gholz, National Security Implications of Unconventional
Oil and Gas Production Technologies, p. 7

16. Oil
?

17. !

18. “I am today ordering a freeze on all
prices and wages throughout the
United States for a period of 90 days.”
President Richard Nixon, August 15, 1971

20. Oil Production, Thousand barrels daily, 1977-2013
Iran-Iraq
War
!"
1000"
2000"
3000"
4000"
5000"
6000"
1977"
1979"
1981"
1983"
1985"
1987"
1989"
1991"
1993"
1995"
1997"
1999"
2001"
2003"
2005"
2007"
2009"
2011"
2013"
Canada"
Iran"
Iraq"
Norway"
*
*MEEIMNE

23. USA

24. output
inputs
production
recipe

37. auerswald@gmu.edu | auerswald.org