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Page added on May 23, 2013
US Oil Surge Could Impact Mideast Geopolitics
The United States will account for a third of new oil supplies over the next five years, and will become energy self-sufficient in 20 years, according to a new report by the Paris-based International Energy Agency (IEA).
Although U.S. oil imports from Arab Gulf countries increased last year, analysts predict the U.S. will lose its dependence on Middle East imports, which is expected to have a huge impact on international relations and the balance of power.
The IEA report describes a ‘supply shock’ from the United States rippling through world oil markets.
“The key to it is the resurgence of shale development in the United States,” John Mitchell, an oil market analyst at policy institute Chatham House in London. “It has been building up over some years, but only in the last three years has it reached big proportions.”
Shale oil and gas are extracted using pressurized fluid to blast the product out from the rock, a process known as hydraulic fracturing or ‘fracking.’ Some U.S. states and European countries have banned the practice over fears that it may cause pollution and even earthquakes.
But the technology will help the United States become largely self-sufficient in oil by 2035, according to the IEA. U.S. gas production is expected to overtake Russia.
When that happens, the concept of energy security will no longer dictate U.S. foreign policy.
“Will the Middle East still be so dependent on U.S. military support?” Mitchell asked. “I am sure the answer is probably yes, but maybe the U.S. does not have quite the same interest in that as it did before.”
A more energy self-sufficient United States has dramatic implications for Middle East politics, according to Christopher Davidson of England’s University of Durham, and author of the book After the Sheikhs: The Coming Collapse of the Gulf Monarchies.
“What we are also likely to see is the United States start to hedge its positions a bit better on the Gulf monarchies,” Davidson said. “As it loses the dependent nature of this economic partnership, we are perhaps starting to see the U.S. already starting to reach out to opposition groups in Bahrain, for example, and increasingly in Saudi Arabia.”
In the midst of the Arab Spring, Davidson says many oil-rich Gulf monarchies are trying to pacify their populations with government handouts. Falling receipts from oil exports could trigger political upheaval.
“Within just a couple of years we’ll have a public spending deficit in most of the Gulf monarchies,” Davidson said. “At the same time, we are also seeing the demonstration effect of the Arab Spring in Syria and north Africa starting to embolden the people of these countries. They are no longer willing to tolerate autocracy.”
Davidson says Gulf states will be gearing their oil exports eastwards in the coming decades.
“However, what is missing is the security relationship that the Western powers have historically provided to the Gulf,” he said. “The Gulf states know, and I suspect they are bluffing, that China and the Pacific Asian states cannot replace the West as this ultimate security guarantor.”
Analysts say the oil boom will give the U.S. economy a competitive advantage with cheap energy supplies no longer vulnerable to global geopolitics.
8 Comments on "US Oil Surge Could Impact Mideast Geopolitics"
BillT on Thu, 23rd May 2013 12:41 pm
Another government propaganda mouthpiece pretending that the US is still a strong empire. Yes, the oil will go to Asia. As much of it already is. And China can easily protect their own shipments when they control the oceans it passes through. China is S.A.’s largest buyer and also is in Iraq, Iran, and Afghanistan as well as most of the other oil producing countries of the world. They don’t have a billion Muslims pissed off at them, and they don’t look Western, so they are safe.
If Americans believe that they will have cheap oil … well, they are a drugged up country and believe anything at this point. Fools.
Arthur on Thu, 23rd May 2013 1:39 pm
““What we are also likely to see is the United States start to hedge its positions a bit better on the Gulf monarchies,” Davidson said. “As it loses the dependent nature of this economic partnership, we are perhaps starting to see the U.S. already starting to reach out to opposition groups in Bahrain, for example, and increasingly in Saudi Arabia.””
Haha, not content with handing over Iraq to the Iranian sphere of influence, now the US allegedly wants to do the same with Bahrein and SA as well? The author is pushing it a little. If it is true what the IEA says (which is doubtful but not entirely impossible) the result would be that the US could withdraw from the ME and cut military spending and get it’s financial house in order. A more likely scenario would be that the new (expensive) ‘oil wealth’ will be used to implement a new energy base and gradually replace the old energy setup and hope/pray for the best with the atmosphere/environment/climate consequences.
DC on Thu, 23rd May 2013 4:06 pm
VOA! RoFL! Now we get links to Pure US propaganda networks haha. I didnt even know the US had kept these professional liars around. Owell, looks like the so-called sequester has left this cold-war relic alive and kicking.
Plantagenet on Thu, 23rd May 2013 5:25 pm
Looks like “drill baby drill” is working out very nicely for the USA.
Rick on Thu, 23rd May 2013 6:07 pm
The United States will account for a third of new oil supplies over the next five years, and will become energy self-sufficient in 20 years, according to a new report by the Paris-based International Energy Agency (IEA).
What BS!
shortonoil on Thu, 23rd May 2013 7:23 pm
The IEA left out a few particulars about this new wondrous oil source:
1) It is the most expensive oil ever produced by the human race (initial investment $148,500/barrel according to the EIA).
2) These are the most rapidly depleting wells ever drilled, (up to 65% the first year – no bell curve there).
3) These wells are great sources if you don’t need to produce transportation fuels from them. Their production is up to 70% condensate, which lack the C7+ fractions needed to make distillates.
As long as we don’t need transportation, an economy, and can survive by selling diluent to the Canadians to mix into their road tar, we can kiss the Middle East goodbye.
J-Gav on Thu, 23rd May 2013 10:37 pm
Exactly, Shorton, they just lie and lie and lie again and know full well that only 5% of the population will notice.
mo on Thu, 23rd May 2013 10:59 pm
Just think how many people are reading and listening to this crap! And believing it!!!