S economy and energy security a good portion of this

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: gest oil producer in the world, after Saudi Arabia. 249 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Independence Now – Reduces Oil Prices 250 Oil DDW 2012 1 Domestic production creates a glut that dips oil prices Maugeri, Research Fellow, Geopolitics of Energy Project, 12 Leonardo Maugeri, Research Fellow, Geopolitics of Energy Project, 6-12, ["Global Oil Production is Surging: Implications for Prices, Geopolitics, and the Environment," Policy Brief, Belfer Center for Science and International Affairs, Harvard Kennedy School, http://belfercenter.hks.harvard.edu/publication/22147/global_oil_production_is_surging. html?breadcrumb=%2Fpublication %2F18205%2Fgood_leaders_must_avoid_emperors_trap] Contrary to prevailing wisdom that increasing global demand for oil will increase prices, the report finds oil production capacity is growing at such an unprecedented level that supply might outpace consumption. When the glut of oil hits the market, it could trigger a collapse in oil prices. While the age of “cheap oil” may be ending, it is still uncertain what the future level of oil prices might be. Technology may turn today’s expensive oil into tomorrow’s cheap oil. The oil market will remain highly volatile until 2015 and prone to extreme movements in opposite directions, representing a challenge for investors. After 2015, however, most of the oil exploration and development projects analyzed in the report will advance significantly and contribute to a shoring up of the world’s production capacity. This could provoke overproduction and lead to a significant, steady dip of oil prices, unless oil demand were to grow at a sustained yearly rate of at least 1.6 percent through 2020. 251 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Independence Now – Solves SAW Shipments 252 Oil DDW 2012 1 Western production and declining demand zero oil from the Middle East soon Wall Street Journal, 12 Wall Street Journal, 6-27-12, [“Expanded Oil Drilling Helps U.S.Wean Itself From Mideast,” Angel Gonzalez http://online.wsj.com/article/SB10001424052702304441404577480952719124264.html] America will halve its reliance on Middle East oil by the end of this decade and could end it completely by 2035 due to declining demand and the rapid growth of new petroleum sources in the Western Hemisphere , energy analysts now anticipate. The shift, a result of technological advances that are unlocking new sources of oil in shale-rock formations, oil sands and deep beneath the ocean floor, carries profound consequences for the U.S. economy and energy security. A good portion of this surprising bounty comes from the widespread use of hydraulic fracturing, or fracking, a technique perfected during the last decade in U.S. fields previously deemed not worth tampering with. By 2020, nearly half of the crude oil America consumes will be produced at home, while 82% will come from this side of the Atlantic, according to the U.S. Energy Information Administration. By...
View Full Document

Ask a homework question - tutors are online