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Most people believed this could never happen, that we'd already reached “peak oil” and that production rates would only fall.
But those predictions were simply wrong. Once again, new technologies, daring entrepreneurs and $-billions in investment capital have changed everything in the oil business.
Amy Myers Jaffe, energy expert dir Baker Inst Energy Forum at Rice-Univ, summarizes the info we have now:
“By the 2020s, the capital energy will likely have shifted back to the W-Hemisphere,” due to both the stable political environment and of course the new technologies of horizontal drilling and fracking.
There's also Pete Stark, a former geologist for Mobil Oil, who agrees, “A huge production revival through 2020 with tight oil leading the
Democrats appear to have the upper hand on the politics of the fiscal cliff, which might explain their brash pronouncements and mind-blowing conceptualization of "compromise." This morning I outlined three possible contingencies for Republicans, none of which is especially attractive. But is there a fourth way? The GOP's dilemma is a doozy. Their opponents, emboldened by the election, are pushing for counter-productive tax hikes on "the rich" -- a politically popular...
This news of energy independence couldn't come at a better time.
Our currency has been in dire jeopardy. Unrest in the Middle East has caused soaring oil prices and has put pressure on the US-$ as reflected in huge US trade deficits.
Last year alone, petroleum accounted for 44% of America's $700-billion trade deficit.
As Edward Morse, former US diplomat, now global head of commodities research at Citigroup says,
“The 2 vulnerabilities of the US as a global superpower have been its dependence on imported oil and its current account deficit. Now it may be in the process of resolving both of those.”
Obviously, that's great news for our country, as Mr Morse explains: “The notion
Compare us to countries like China, which're going to be overwhelmingly dependent on energy imports. The US is in a much stronger position.”
A sharp unprecedented increase in US crude oil drilling rigs are in operation. That means an unprecedented increase in US supply is around the corner.
The US is still in its infancy for shale drilling. There's still a huge shortage of drill rig supplies, fracking crews. If you doubt any of this view this chart:
files.dailywealth.com/images/psi-chart3.jpg
Oil is now much cheaper in the US than it's in the rest of the world. That's a startling development that hasn't happened in more than 40-yrs !