However, in 2008 the notions of the impeding scarcity had a reverse effect with the producers wanting to make a large profit before the reserveswere depleted. This saw the prices rise continually. At that rate the country would be spending many billions of dollars on importation of petroleum and natural gas. This would create a distress in the economy because of the increased trade deficit.
It is true that Asia is the new ground zero for growth of energy consumption.it is also true that Asia will be responsible for 85% of the energy consumption growth on the planet in the next 20 years. This has seen Russia try to form ties with the east to establish a proper market for its hydrocarbon exports3. The obvious deduction from this would be that Russia would wield more geopolitical power in the next few decades, which is not likely to be the case4. The current technological advancements have enabled rapid expansion of the shale gas industry in the US. In a decade, the industry has grown dramatically with the product now in abundant supply,seeing drastic reduction in prices. The policy debate has snow shifted to how much of the nation’s energy resource should be exported.
The strengthening of the US’ geopolitical strength due to the shift in paradigms of the global energy market has greatly hindered China’s attempt to be the global leader. The best way to counter this influence would be to weaken the alliances that the US has with states in the region. The result has been the heightening of maritime tensions in the region with the East China Sea conflict providing a good illustration5. Both China and japan lay claim to a number of geographical features found in the sea. The features that comprise of a few islands and territorial waters could provide energy reserves and fishing grounds6. However, this is not the only reason behind the conflict.