http://opinion.financialpost.com/2012/03/30/lawrence-solomon-a-world-awash-in-oil/
This is an opinion article about the future of oil production and the Middle East. Essentially it posits that new methods for obtaining oil will allow the United States to produce so much more oil that it will no longer need to depend on other countries. In much the same way that fracking has allowed us to go from importing to exporting natural gas, the article reasons that with advances in oil gathering techniques we can export oil.
As a result of this, the article argues that countries which now depend on exporting oil, such as Saudi Arabia, will lose a huge portion of their national income. It further concludes that this could cause countries like Saudi Arabia to break apart and be ruled "along tribal lines". However, it also says that the western world would be significantly less concerned about this because it would no longer be a major oil supplier.
While I do agree that we will probably be able to more efficiently produce oil ourselves, I don't think it will have the effect the author of this article does. For one thing, only a small portion of the oil we import comes from the Middle East - Canada is our largest supplier. I also doubt that Saudi Arabia will simply fall apart as the world looks on apathetically, and to say that it will be ruled along "tribal lines" is a gross oversimplification. Still, it is an interesting idea that maybe our oil isn't running out as we thought.
2 comments:
This article shows the principle question of what to produce. The government clearly is starting to influence what we will produce and what we will by in regards to oil. The consequences of this will change not only our economy but other economies and not just the Middle Eastern countries that will not be able to export as much oil.
There is definitely a large amount if oil shale deposits, but we have to find ways of producing the end result economically. The process requires large amounts of water and very high temperatures, and the net return is not high at all. So, unless we find effective techniques of producing oil, we are less likely to benefit from the oil shale deposits.
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