Monday, November 12, 2012

North America To Turn Net Oil Exporter

A shale oil boom means the U.S. will overtake Saudi Arabia as the world's largest oil producer by 2020, a radical shift that could profoundly transform not just the world's energy supplies, but also its geopolitics, the International Energy Agency said Monday.

Some in the U.S. are already questioning the reasons for keeping U.S. warships in the Persian Gulf. "It's insane that we have the Fifth Fleet of the U.S. Navy tied up there to protect oil that ends up in China and Europe"...
WSJ: Shale Boom to Turn U.S. Into World's Largest Oil Producer

1 comments:

san said...

The US would first have to impose restrictions on the export of oil, otherwise with oil being a fungible commodity, interference with even oil supplies overseas would affect its price inside the US. The other thing is that even if the US retreated into isolationism, would it want to see China and others moving in to fill the vacuum left behind? Certainly the Chinese, Japanese and Europeans are still net importers, and would be forced into measures to secure their oil supplies.