Tag Archives: Iran

Bloomberg: How OPEC Weaponized the Price of Oil Against U.S. Drillers

Cheap gas feels good. It made for a more pleasant Christmas. But it should be remembered that many of the very best, highest paying jobs created since the onset of the great economic slowdown (in 2013 oilfield workers in North Dakota made on average over $112,000/year – many without a college degree) in the USA have been in the energy sector, and primarily in hydraulic fracking. Say what you want about the practice but it has been a (the?) key source of economic growth (such as it has been) for the United States over the last 4 years. Additionally, and this is not well known, fracking has (and the cheap natural gas which has come with the practice) pushed down USA carbon emissions markedly. As of October 2013 carbon emissions were at 1992 levels and dropping. Think about that. If one is concerned about global warming, and we know some of our readers are, that should be cause for celebration.

And before people start freaking I out, I have absolutely no horse in the fracking race. In fact there is a pipeline scheduled to go in just south of me transporting fracking product from West Virginia to the coast which I am not terribly keen on.

Saying this however the fracking revolution has been a huge benefit to the US economically and at least as important from a geopolitical perspective. We are now a net exporter of oil. We are the biggest producer in the world! 5 years ago people would have laughed at the idea that our reliance on foreign oil could be reduced so quickly, if at all.

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