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OPEC weakened thanks to fracking

August 15, 2013

Evidence indicates once again that hydraulic fracturing techniques in the oil and gas industry are helping to turbocharge North American energy production and reduce the thirst for oil from the Middle East and OPEC.  Rather than combating the financing of terrorism by maintaining onerous regulations on banks and intrusive data mining programs on bank customers, the more effective approach in the long run may be unshackling the private sector and encouraging growth in domestic oil and gas markets to reduce dependence on hostile regimes overseas.

FuelFix blog reports:

Demand for OPEC’s crude will slip by 300,000 barrels a day next year to 29.6 million a day next year, or about 2.6 percent less than the 12-member group is pumping now, the organization said in its first set of forecasts for 2014…

Dependence on OPEC’s crude is slipping as the U.S. and Canada unlock unconventional oil supplies from deep underground shale deposits with new drilling techniques. Brent crude futures have slipped 2.7 percent this year, trading at about $108 a barrel on the London-based ICE Futures Europe exchange today, amid signs of slowing growth in China and uneven recovery in the U.S., the world’s biggest oil consumers…

Energy in Depth blog adds:

This great news also comes on the heels of a report by the Energy Information Administration, which found that for the first time in 16 years, American crude oil production surpassed imports at the end of May.  Additionally, the Paris-based International Energy Agency (IEA) revealed in May that a major increase in North American oil production is sending “shock waves” throughout global energy markets, a phenomenon that could lead to North American energy independence by 2035.  As IEA executive director Maria van der Hoeven put it: “North America has set off a supply shock that is sending ripples throughout the world…A real game changer in every way.” IEA predicts that North America will provide 40 percent of new oil supplies by 2018, while the contribution from OPEC will slip to 30 percent. It’s not surprising, then, that one OPEC official has gloomily admitted: “Some member countries are really suffering from U.S. shale oil”…

Indeed.  Saudi mogul Alwaleed bin Talal recently made headlines after writing an open letter to his government warning that fracking has become a threat to the Kingdom.

2 comments

  1. Reblogged this on oogenhand and commented:
    Alwaleed bin Talal is cursed. Wahhabism will be destroyed, as I predicted. I hate to repeat myself, but hell is eternal.


  2. Awwww. AWWWWWwwwww! The poor OPEC bayyyyybies. THANK YOU, Money Jihad, for this encouraging report.
    And thanks to you, America, it’s FRACKING TIME! (or, as Elvis might say…. “Frack you, ver much…”)



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