Saturday, October 19, 2013

The U.S. Is Changing The Global Oil Landscape

File of pump jacks are seen in the Midway Sunset oilfield, california, in this April 29, 2013 file photo. Reuters/Lucy Nicholson/Files

Analysis: Awash In Oil, U.S. Reshapes Mideast Role 40 Years After OPEC Embargo -- Warren Strobel, Reuters

WASHINGTON (Reuters) - Forty years after an Arab oil embargo throttled the U.S. economy, surging North American energy production has brought the United States closer to a long-dreamed "energy independence" that is reshaping its goals and role in the Middle East.

On October 17, 1973, OPEC announced an oil embargo against the United States and any other country that supported Israel in the Yom Kippur War. That use of oil as a diplomatic weapon has driven an American yearning for disengagement from the Middle East and its problems ever since.

Such a strategic divorce is unlikely to occur soon, current and former U.S. officials say. Washington has too much invested in the region, from support for allies like Israel to the fight against Islamic militants.

Read more ....

My Comment: Hydraulic fracturing (fracking) has clearly changed the global oil picture .... and while that day of the U.S. being energy independent is still a long ways off, U.S. oil production is dampening price increases that would otherwise be taking place.

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