To Drill or Not to

artappraiser — Tue, 28 May 2013 02:21:58 +0000

In reply to US shale oil supply shock shifts global power balance

To Drill or Not to Drill
The coming American oil boom is bad news for Saudi Arabia. How the kingdom responds could very well determine if it survives.
By Gal Luft, Op-Ed @ ForeignPolicy.com, May 27, 2013

[Gal Luft is senior adviser to the United States Energy Security Council and co-author of Petropoly: The Collapse of America's Energy Security Paradigm.]

Current trends in the global energy market don't look good for Saudi Arabia. First, the International Energy Agency projected in November 2012 that the United States will surpass the Gulf petrogiant as the world's top energy producer by 2020. Then, last week, it revealed that North America, buoyed by the rapid development of its unconventional oil industry, is set to dominate global oil production over the next five years. These unforeseen developments not only represent a blow to Saudi Arabia's prestige but also a potential threat to the country's long term economic well-being -- particularly in the post-Arab Spring era of elevated per-capita government spending.

But if the kingdom's outlook is decidedly bleak, its official response has been muddled [....]

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According to Greer, this

Donal — Tue, 14 May 2013 19:49:46 +0000

In reply to US shale oil supply shock shifts global power balance

According to Greer, this graph shows US oil production up to 2012. The small increase above 2010 represents the recent "boom" in unconventional liquids like fractured gas, dilbit from tar sands, tight oil and shale oil. Without even mentioning the environmental costs, we have a long way to go to match the output of conventional oil the US was producing in 1970, much less to dominate the world.

dagblog - Comments for "US shale oil supply shock shifts global power balance"

To Drill or Not to

According to Greer, this