Part 2/12:
To understand the implications, it's essential to examine the historical relationship between U.S. policy and energy economics. Since at least the 1970s, the U.S. government has been cautious about actions that could destabilize energy supplies or inflate prices. This concern stems from the inelastic nature of energy demand—consumers and industries require a constant supply of fuel, making energy prices highly sensitive and politically charged.
The shale revolution, which transformed the U.S. from an oil importer into a major exporter, has shifted some dynamics in recent decades. However, the overarching cautious attitude toward energy disruption persists among political leaders who aim to prevent spikes in prices that could impact their political stability.