The Arctic’s oil reserves mapped – BBC NEWS
The map is the culmination of an assessment carried out by the US Geological Survey (USGS). Writing in the journal Science, its authors say the findings are “important to the interests of Arctic countries”. But, they add, they are unlikely to substantially shift the geographic pattern of world oil production. (via BBC NEWS | Science & Environment | The Arctic’s oil reserves mapped).
What may save US yet? Not the usual suspects.
US auto is down – but not yet out. It will limp along for few more decades.
Boeing will face fresh competition from BRICS – Brazil’s Embraer, Russia’s (Ilyushin) and the Chinese (passenger jet programme). US electronics is stagnant – and fading power.
The US is still the prime force in the computing industry – though not on the manufacturing side. Chinese manufacturing is the dominant force in computer manufacturing.
US oil industry no longer dominates international markets the way they did in mid-20th century. The US Nuclear industry faces increasing competition from a public sector French and Russian industry – and India is planning to add its ‘frugal engineering’ muscle to this segment.
Higher education may save the day
What will sustain the competitiveness of the US industry – with out the dollar hegemony? The US education system is still significantly productive (measured in terms of patents, Nobel prizes, innovation, output, research papers, etc.). The US higher education system is notoriously hobbled by a weak school education system. How long will that advantage last – without an infusion of foreign talent?
The US entertainment industry remains the biggest in the West – and by many measures in the world also. Partially controlled by the Japanese, it however remains significantly competitive and dominating.
Agriculture is more fragile than estimated …
The seemingly strong position of the US in agriculture is based on two aspects. Massive direct subsidies – of more than 8 billion dollars. And indirect subsidies of possibly another US$ 8 billion. Most of which goes to the 46000 farmers who account for 50% of the US agricultural production.
The communication sector has seen an erosion in US competitiveness. The domination of GSM technology is seemingly solid for another 10-15 years – a technology, in which the US is weak player. The long-term direction for that industry anyways seems like IP-protocol systems. This may well result in commoditization of network equipment and terminal – and the increased importance of content. Low and medium switching technology may see greater commoditization with the eclipse of Cisco by the Chinese switch companies.
Green is still in the red …
Environment engineering provides no major advantage to the US. Solar panels, wind energy equipment, hydrogen technology have all seen greater diffusion of leadership and market share. It may not give greater opportunity to the USA.
Finance and banking
Global financial markets were dominated by the US organizations in the past – but with the global financial crisis and the end to dollar dominance may see reduced clout for US firms. Their position will become broadly similar to current position of Swiss banks – mildly competitive, solid history, fading reputation.
With such an outlook over the next 10-25 years, what the US leadership may focus on is Arctic oil. Oil will remain a strategic asset only with high prices (slower production increase and faster demand growth) and if no other energy source appears. Oil finds in the Atlantic and Pacific republics may spoil the party – for instance, Cuban oil.
Much like the respite of the North Sea oil to Britain, Arctic oil may provide a temporary halt to the slide in US economic dominance.
If the US can lay its hands on a significant part of it!