By the end of the year, the United States is likely to become the world's largest oil producer.

In 1970, the eve of the energy crisis. American oil drilling company produced 10 million barrels of crude oil for the last time, the price is $1.8 per barrel. Nearly 50 years later, oil prices are hovering around $65 per barrel, and us crude oil production is set to reach eight digits again.

Last year in October, American net oil and refined oil imports fell below 2.5 million barrels per day which reaches the lowest level since the first official data was collected in 1973. A decade ago, America's net oil imports were more than 12 million barrels per day. "Over the past 40 years, since the Arab oil embargo, we already have the attitude of energy shortage," founding director of the Center on Global Energy Policy of Columbia University, former Obama administration officials said Jason Madoff said "Due to the shale revolution, the US has become an energy superpower."

The Trump administration is planning to open vast ocean areas for offshore exploration, this will be the first time in 40 years that drilling has been allowed in the Arctic National Wildlife Refuge. It may take years to develop, but the rate of return is nothing compared to the waiting. It is estimated that there are 11.8 billion barrels of recoverable oil in Alaska.

The new world energy order may emerge as the United States pushes Saudi Arabia and Russia from the top of the energy pyramid.

Such shuffling is good for America, but not that good for the world.

First of all, the oil countries influence will diminish.
Diplomats do not need to carefully avoid "the American NO. 1" foreign policy encounter with Saudi Arabia's oil supplier. At the same time, this will make Mr. Putin's foreign policy lose some strength, but Russia's rulers will find that to maintain the way of life they already get used of will be more difficult.

OPEC faces unprecedented challenges. If OPEC cuts production, America shale gas producers could reduce their grip on prices by increasing production and stealing market share. The only solution is to maintain the status quo. If shale gas stays low, Russia will be a big loser. Moscow has used oil revenues to fund aggressive foreign interventions from Ukraine to Syria. The only solution is to continue to work with Saudi Arabia to keep production at a lower level, but that is clearly not what Mr. Putin would like to see.

In addition, shale gas 2.0 could damage refiners.

Shale gas has a huge advantage over oil. For years, refineries have spent billions of dollars on special equipment to process high-density, high-sulfur, low-quality crude from Mexico, Venezuela, Canada and Saudi Arabia. And the quality of the shale gas is so high that it has turned the equipment into a pile of metal scraps.
With the emergence of renewable energy and the development of electric vehicles, demand for shale gas is rising, and shale gas may struggle to keep pace with global consumption. The world will have the opportunity to witness the most unusual cycle of markets -- high oil prices and the rising production in America.