Fracking and shale boom have reduced reliance on imported oil

Not long ago, the idea of the U.S. achieving energy independence seemed far-fetched. America's vast energy needs have long been met by oil imported from foreign powers, some of whom clash with American interests and ideals. It was apparent during the crippling Arab oil embargo on the U.S. during the 1970s, an era symbolized by motorists lining up at the pump and a dramatic increase in gasoline prices.

But the shale oil and gas revolution of the last couple of decades has made the improbable goal of American energy independence close to reality. Analysts at Raymond James recently predicted the U.S. will be "tantalizingly close" by 2020, as long as oil prices and domestic production rebound.

"The U.S. will be a much smaller importer of oil in the future than anybody thought was possible a decade ago," said Jason Bordoff, a Columbia University professor and former energy policy adviser to President Obama.

Energy independence has been a major promise of politicians for decades, with Donald Trump joining that trend. In May, Trump promised "complete" independence from foreign sources of oil, saying: "Imagine a world in which our foes and the oil cartels can no longer use energy as a weapon. Wouldn't that be nice?"
By 2020, Raymond James believes the U.S. will import just 11% of its daily oil needs. At that point, net imports could be met entirely by supply from Canada and Mexico.

"This would be North American oil independence, with no reliance on imports from outside the continent," Raymond James analysts wrote.
This was achieved in spite of Obama and not because of his policies.  It is something that I have been predicting if the government got out of the way and allowed more drilling.  Even though Obama did not do it technological innovation allowed producers to access shale oil and changed the world.

OPEC has effectively lost the ability to manipulate the price of oil and the cost of production in US shale fields effectively puts a ceiling on the price they can charge.  American producers are effectively enhancing efficiency in the oil fields and driving down their cost of operation putting added pressure on OPEC.

See also:
America Is Smashing Russia and OPEC's Grip On The Oil Market
It is a pretty good compilation of recent trends that have upset the OPEC and Russian marketing strategies.


Popular posts from this blog

Democrats worried about 2018 elections

Obama's hidden corruption that enriched his friends

Illinois in worst financial shape, Texas in best shape