Clifford Chance

Where is the US energy market today?

24 April 2012

Policymakers in the United States are spending a great deal of their time during this election year discussing energy production strategy. And although energy has always been a politically emotive issue, it has become an even more significant debating point among both parties as they focus on the different opportunities and challenges presented by the well-established as well as the relatively nascent energy production sectors of the US market.

This complex and sometimes confusing debate is further complicated because the U.S. does not have a specific “National Energy Plan”. Each administration sets forth its policy goals, but those generally do not have the force of law (unless embodied in various Energy Policy Acts). The reality is that the U.S.’s current “plan” is a laissez-faire, market-based approach, which has created an energy supply system that responds to price signals – but not much else.

Such an approach is also likely to create a certain degree of uncertainty over which of the sectors in the U.S.’s diverse energy market are likely to be given priority over the coming years.

In this article, we analyse some of the most significant issues in each of the main sectors in the U.S. energy market to assess the prospects for each one.

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