The impact of U.S. energy independence on global energy trade networks: A trade flow-based perspective

Abstract

[Objective] International energy trade plays a crucial role in influencing national energy security and socio-economic development across regions. In order to understand how resource supply shocks affect regional trade, it is urgent to analyze U.S. energy independence. [Methods] This study aims to analyze U.S. energy independence from the perspective of energy trade flows and its effect on the global energy trade network over the period from 2000 to 2020. A comprehensive analysis is provided using complex network analysis methods to track and explore the dynamic effects that the U.S. energy independence process has exerted on the global energy trade network during this time frame. [Results] (1) The research revealed that the United States has reduced its high dependence on petroleum imports and emerged as a significant energy trading nation, balancing both petroleum imports and exports. At the same time, the United States has greatly strengthened its export of natural gas, becoming a major exporter in the natural gas trade networks. (2) For trading partners of the United States, most energy-exporting countries (regions) have decreased the volume and proportion of energy trade with the United States and expanded their energy export targets. Energy-importing countries (regions) have increased their energy trade volume and proportion with the United States, thus increasing their dependence on American energy imports. (3) With regard to energy trade competition, the U.S. has experienced reduced competition with other energy-demanding countries or regions concerning energy imports. However, when it comes to energy exports, the U.S. faces intensified competition with other energy-supplying nations or regions as it continues to expand its role in the global energy export market. [Conclusion] The expansion of U.S. energy supplies has introduced new dynamics into the global energy trade landscape, particularly by intensifying competition among energy-exporting countries. For energy-importing countries and regions, the rise of the U.S. as a key energy supplier presents opportunities to diversify energy sources, potentially reducing energy security risks related to supply disruptions. For instance, countries like China can mitigate energy security risks by diversifying their import channels, increasing energy trade volumes, and strengthening partnerships with a broader array of energy suppliers, including the U.S., in order to safeguard their energy supply in an increasingly competitive environment.

Keywords

• energy trade networks|resource supply shocks|u.s. energy independence|complex network method|energy security