The United Stated (US) would attain self-sufficiency in energy in the next five to seven years, Chairman of Reliance Industries and India's richest man, Mukesh Ambani, has projected.
Ambani who spoke yesterday in his first television interview in almost a decade with CNN, said there has been a fundamental transformation in the energy scene in the U.S.
"For many decades, we have heard that the US will be independent of foreign imports of energy. Realistically, I can now tell you that it is my judgement that this will happen in the next five or seven years." The US he said, has truly found non-conventional energy in shale oil and gas which he noted is "really, really bringing benefit not only to the population in the US, but, really, to across the world." He also stated that the world energy will transit from what he termed "hydrocarbon present", which is coal, oil and natural gas, over the next many decades into a fully renewable, sustainable future, of which solar will be at the heart.
Ambani, is the richest man in India and second richest man in Asia. He is the Chairman of India's largest company, Reliance Industries, a textile making industry which was started by his father in 1980.
However, the company's revenue presently, comes mostly from energy, with retailing and telecommunications also contributing to its revenue.
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The fact that the United States will be independent of crude oil exports is occurring for two reasons. First, the U.S. dollar is no longer the global reserve currency. In the 1970's, the U.S. made a deal with the oil rich nations of OPEC and others that if they used the American dollar in their international trade, then the U.S. in turn will buy crude oil and vast amounts of consumer goods. In 2010, Russia and China were the first nations to announce that they would no longer use the dollar in trade with each other. India, Iran, Saudi Arabia, Latin America, the African Union, and Japan have all followed suit. Now in retaliation, the U.S. is now racing to produce its own oil. The United States will suffer a massive currency devaluation because of this and protectionism will ensue from this. The second reason for America's growing independence is because since much of America's manufacturing jobs are overseas, and 40% of the federal budget comes mostly from loans provided by China, Japan, Russia, and Saudi Arabia; the U.S. is in chronic need of revenue to service its debt and reduce the proportion of the budget on loan money. The United States is transitioning into an economy that will be more dependent on oil exports. Some fear that the oil curse will hit the United States as it did to the Soviet Union in the 1970's and 1980's and various oil producing countries (Nigeria, Angola, Libya, Saudi Arabia) with complacency, corruption, militancy, and even war. America has a pretty significant problem with corruption as it is, so I would not be surprised if this comes into fruition.