Quote:
Originally Posted by vienna
The oil prices were also lowered to screw over US oil companies who, because oil prices were so high, found the extraction of shale oil by fracking was economically feasible, making a rather big area of competition to the Saudis. For the Saudis, mission accomplished: the significant collapse of fracking is due far more to the decreased cost benefit to the oil companies than any actions by the conservationists...
There is also the continued move to alternative energy sources and more efficient vehicles that use less or no petroleum fuels. The change has become worldwide and is beginning to impact oil sales in formerly heavy consumption nations. Even China is making moves to lessen petroleum consumption and that would remove a very large customer base from the Saudis...
<O>
|
Indeed, although I think if and when supplies start drying up then we'll probably end up revisiting fracking, I suspect that the supplies will start drying up before we have transitioned away from such petroleum dependency so there will still be a big need for the stuff. I think also the upcoming nations, the next eleven will develop a big thirst for oil before they can transition to a post-oil based economy.
I guess this could be another reason why the Middle East is slowly unravelling, the Saudis see their income drying up and have decided to move on Iran to assert their dominance in the region while they still have the money to do it.
