America's energy revolution can be the key to its competitiveness. This has OPEC and Europe worried.
OPEC has asked the U.S. to stop producing so much oil, according to a report Thursday. Saudi Arabia is not enjoying free markets and the shale energy revolution.
CFACT energy policy advisor Marita Noon reports that, having failed to destroy U.S. oil and gas producers via increasing its own oil production, has now signed an OPEC agreement to cut back production -- largely because the artifically low price of oil was hurting producers worldwide.
OPEC's Secretary General Abdulla al-Badri last month predicted oil prices will rebound to as much as $200 per barrel, a figure CFACT advisor Marita Noon suggests could only come about if terrorism and internal strife force shutdowns of major oil-producing states such as al-Badri's native Libya and other Middle Eastern nations vulnerable to radical assaults. Otherwise, Noon notes, as soon as the price jumps about $70 per barrel, the nimble U.S. wildcatters will step up their production again and hold the oil price well below al-Badri's predicted $200 per barrel.
The 1973 OPEC oil embargo revealed a serious weakness in America's energy and national security, one that has plagued this nation ever since. But fracking, horizontal drilling, and energy diversification that includes natural gas for long-haul trucking and electric vehicles for short-haul, light duty work have turned things around.
Energy is a big part of the entire Middle East discussion. Many people believe that if the U.S. were not dependent on OPEC oil, we’d have no involvement in the centuries-old tribal conflicts. Any vote for the President’s plan should be tied to decreasing dependence, increasing independence—or, more accurately, North American oil security. Two specific policy directives are needed. First, tie any authorization of military action in Syria to approval of the Keystone pipeline,.... Second, allow access to domestic oil and gas resources and expedite drilling permits on federal lands.