by Robert Maynard
Despite the downplaying the potential of fracking technology to more efficiently extract natural gas and oil by its critics, a Saudi Prince worries that it will allow the U.S. to surpass the Saudis as the world’s number one oil producer. The only thing that might save them is the political opposition to the use of such technology in the U.S. That opposition may just be the only thing standing in the way of the U.S. becoming the world’s leading oil producer. Here is an excerpt fro a Sky News article on the subject:
A Saudi prince has warned that his oil-reliant nation is under threat because of fracking technology being developed elsewhere around the world.
Billionaire Prince Alwaleed bin Talal said the Gulf Arab kingdom needed to reduce its reliance on crude oil and diversify its revenues.
His warning comes as rising shale energy supplies in the United States cut global demand for Saudi oil.
In an open letter to his country’s oil minister Ali al Naimi and other government heads, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from Organisation of the Petroleum Exporting Countries (Opec) member states was “in continuous decline”.
See this article as well for how the U.S. could be the winner in all this:
The United States is to become virtually self-sufficient in energy in the coming decades while Iraq is set to be the leading oil supplier to China, the world’s leading energy authority has said.
The predictions have been made by the Paris-based International Energy Authority (IEA), in its annual World Energy Outlook report.
In recent years the US has reaped an energy windfall as new technology allowed access to previously unrecoverable shale gas and so-called light tight oil reserves.
So dramatic is the US shale gas boom, now seen as a “game changer”, that recently planned harbour gas import plants have been redesigned for export.
“By around 2020, the US is projected to become the largest global oil producer – overtaking Saudi Arabia until the mid-2020s,” the IEA said.
“The result is a continued fall in US oil imports, to the extent that North America becomes a net oil exporter around 2030.”
The IEA said the cost saving for gas and electricity in the US will help improve its competitiveness and “spur economic activity”.
Again, the main obstacle to this becoming a reality is political opposition here in the U.S.