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Shale Drives Uncertain New Geoeconomics of Oil


Shale Drives Uncertain New Geoeconomics of Oil

Emilio Godoy, IPS News

WASHINGTON - The emergence of fracking has modified the global market for fossil fuels. But the plunge in oil prices has diluted the effect, in a struggle that experts in the United States believe conventional producers could win in the next decade.

The U.S. oil industry had peaked – when the discovery of new deposits and output from existing wells begins to fall – which made the country more dependent on imports. But the equation was turned around thanks to the new technique.


"The United States would become the new “swing producer,” although
without achieving the same power as the Gulf producers in influencing
the market."

That Saudi Arabia is operating independently of the USA, is a mighty long stretch. There are other possibilities that weren't mentioned, for example that the price of oil is being driven down to make life more difficult for Russia, Iran and Venezuela, among others on the USA's hit list. I'd like to have seen these reasons discussed as well and why the author didn't consider them as applicable.


"The innovative technology of hydraulic fracturing or fracking..."

It's not so much innovative as brutish and dirty--only facilitated by Cheney's team that practiced their sorcery far beyond any ray of sunshine.