Game Changer: America's self-sufficiency in energy

America has done it again. While several experts continue to write about the coming decline of the American era,America has achieved a feat which very few emerging economies can hope to achieve: Energy Independence. With massive reserves of Natural gas and Shale gas, America will soon become a net exporter of gas. Ever since the oil shock of 1973, America has a declared goal to move towards energy independence which it is very very close to achieving. This means that America will become more aggressive in its policy towards Gulf and middle east states since it does not have anything to loose. Any escalation of conflict in Iran could lead to sharp rise in crude oil prices delivering massive economic shock to emerging economies like China and India while keeping America largely unaffected. India would be worst hit since its strategic oil reserves can meet only 15 days of demand in case of a supply disruption. hence India is trying very hard to strengthen its relationship with Iran. High crude oil price continue to be the biggest threat to Indian equity markets this year