Posted on 12/06/2018 12:48:44 PM PST by Hojczyk
America turned into a net oil exporter the week of Nov. 26, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what President Donald Trump has branded as “energy independence.”
The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania. U.S. crude shipments reached a record 3.2 million barrels the week of Nov. 26, government data show.
The shale revolution has transformed oil wildcatters into billionaires and the United States into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. The cartel and its allies are meeting in Vienna this week, trying to make a tough choice to cut output and support prices, risking the loss of more market share to the United States.
“We are becoming the dominant energy power in the world,” said Michael Lynch, president of Strategic Energy & Economic Research. “But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting.”
(Excerpt) Read more at ttnews.com ...
Ping.
So, why be upset if OPEC cuts their production?
YEEEEEHAAAAAW!
Just think if ol Cankles was president we would be grabbing our ankles
Sarah Palin
The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters
Everyone knew it was crazy to try to extract oil and natural gas buried in shale rock deep below the ground. Everyone, that is, except a few reckless wildcatters - who risked their careers to prove the world wrong.
Things looked grim for American energy in 2006. Oil production was in steep decline and natural gas was hard to find. The Iraq War threatened the nation’s already tenuous relations with the Middle East. China was rapidly industrializing and competing for resources. Major oil companies had just about given up on new discoveries on U.S. soil, and a new energy crisis seemed likely.
But a handful of men believed everything was about to change.
Far from the limelight, Aubrey McClendon, Harold Hamm, Mark Papa, and other wildcatters were determined to tap massive deposits of oil and gas that Exxon, Chevron, and other giants had dismissed as a waste of time. By experimenting with hydraulic fracturing through extremely dense shale—a process now known as fracking—the wildcatters started a revolution. In just a few years, they solved America’s dependence on imported energy, triggered a global environmental controversy—and made and lost astonishing fortunes.
DRILL BABY, DRILL!
Where’s that from?
Alright!
Now lets join OPEC and charge other countries a fortune for our oil!
Nice
Roger that. More than one way (or reason) to drill, baby, dill.
Sounds like a great book, lots of positive comments
Palin was mocked by the elites for “drill baby drill”.
Spit.
Never join a cartel so they can manipulate the outcome. Let American oil men and demand decide....
Because oil is a world wide fungible commodity. So long as there is a free market in oil it will be sold to the highest bidder. “Net Exporter” means that US producers can’t higher prices overseas than domestically.
If OPEC cuts then prices will go up including in the US. Domestic consumers will be forced to at least match prices offered on the world market.
The alternative is to have government price controls to ensure low prices. We know how that works. You can control supply or price but you cannot control both.
Check for which refineries need heavy oil, and which are engineered for light sweet crude. Many U.S. refinery were designed for a heavy grade crude available from Mexico, Venezuela, and more recently imports from Canada.
Europe designed process around the Saudi oil. They can refine shale oil with better product cuts.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.