There is an ongoing power shift in the world energy market that is receiving scant attention in the MSM. The International Energy Agency (IEA) in its annual publication, World Energy Outlook, predicts that the U.S. will dominate the global oil and gas markets for many years to come as a result of the shale boom, which is the biggest supply surge in history.
By 2025, the growth in American oil production will equal that achieved by Saudi Arabia at the height of its expansion, and increases in natural gas will surpass those of the former Soviet Union, the agency said…. The boom will turn the U.S., still among the biggest oil importers, into a net exporter of fossil fuels. (emphasis added)
IEA Executive Director Fatih Birol said,
The United States will be the undisputed leader of global oil and gas markets for decades to come…There’s big growth coming from shale oil, and as such there’ll be a big difference between the U.S. and other producers.”
US shale oil producers using fracking technology, have developed an agile, cost effective system of establishing wells but not completing them. When the market conditions demand more output, wells are completed and production can begin in a relatively short period of time. This capability is not lost on those on those following the energy market. The US industry,
“…has emerged from its trial-by-fire as a leaner and hungrier version of its former self, remarkably resilient and reacting to any sign of higher prices caused by OPEC’s return to active market management…”
Also, there can be no doubt that US energy dominance is a key element in driving the sea changes we are seeing today in Saudi Arabia. Gone are the days of unlimited Saudi money to finance terror groups. In fact, the past year has seen enactment of austerity measures and the arrest of Saudi princes and state administrators to recoup funds and to curb corruption.
For decades, the left and their environmentalist allies have screamed about weaning the US from Mid-East energy resources while screaming “no blood for oil!” What do they say now?
John Smith is the pen name of a former US intelligence officer