Bad news for the Gulfies and their Israeli friends.

 

If new incremental costs per barrel for US shale oil are as low as described in this article the political power of the Arab States of the Gulf is markedly reduced.  It should be remembered that shale is only one portion of the ever growing wealth of petroleum reserves being discovered on US territory.  The new Permian Basin reserves in Texas as well as those on the north slope of Alaska come to mind.  pl  

http://www.zerohedge.com/news/2017-03-21/how-opec-lost-war-against-shale-one-chart

Comments

[yogadoggy]

Since this is a national security oriented blog, I keep dropping clues about the true nature the U.S. fossil fuel predicament. They rarely get picked up. I agree with you LeeG, production of conventional oil peaked in the U.S. in the 1970's. We've been a net importer ever since and will be ever hence.

Here are some samples from comments to Art Berman's refutation of the zerohedege article linked here:

Not a single commenter has the hands on experience that Art Berman does working in the oil business for 36 years. Art Berman is using data backed conclusions demonstrating that we are not making money with shale oil production. But no one wants to hear that America is NOT winning the crude oil price war with OPEC countries.

Arts information, again, is from an expert professional Geologist that is still working as well as giving presentations to numerous Geological Societies and other groups associated with the oil & gas business. His work is on par, and no one wants to hear his answers. Our country needs to wake up because what wall street is telling folks in order to get more equity to give to the shale oil producers is absolutely wrong. Art doesn't deal in opinions, he deals in factual data. Regards.

The price of the unconventional oil is something that the world economies cannot sustain. Peak Oil was all about economic conventional oil, and Art has been on the mark regarding Peak Oil. It took me a while to buy into Arts work, but realizing that his work is based on data driven analysis, I eventually realized his work was right, but most folks do not want to believe it since it is not giving them the answer that they want or like.

Really Col. Lang? Zerohedge?

[LeeG]

Maybe folks who derive income from the nations credit card aren't inclined to acknowledge physical limits.

[charly]

Free market doesn't exist for daily essentials.

[charly]

What has CO2 to do with the Sahara? Greening has to do with the availability of water