Land of Opportunity? Policy, Constraints, and Energy Security in North America

Abstract

This paper explores some of the issues that confront the full realization of the benefits of energy resource development in the United States, Canada, and Mexico, collectively. We discuss the potential to improve North American energy security and macroeconomic well-being by removing barriers to unimpeded trade. It is argued that deeper trade relationships under the precedent NAFTA umbrella across the energy value chain can be achieved by capitalizing on the opportunities availed from unconventional oil and gas resources in Canada and the U.S. and energy reform in Mexico. In turn, this will facilitate a larger collective presence for North America in the global energy landscape. While this essay is not exhaustive, we highlight select issues that can lessen the commercial viability of various development opportunities, and how that, in turn, can restrict the realization of broader energy and economic security. Finally, we set the stage for a deeper investigation into how an enhanced North American energy sector affects (and is affected by) geopolitics and international trade.