From: A world awash in Oil - Lawrence Solomon, National Post (edited)
The Middle East will attract scant attention in the future because the rest of the world will also be awash in oil.
Until recently, many thought the West was running out of gas. Then new technologies emerged to extract gas from shale and other rock formations.
Thanks to fracking, the US has become the world's largest producer of natural gas, creating a massive glut that has more than halved the price of natural gas.
The oil story is following a script. The US has the world's largest store of shale oil and it will soon be self-sufficient in oil.
Although shale oil technology is still in its infancy, much of the US shale oil can be developed inexpensively.
Israel has 250-billion barrels in one basin near Jerusalem alone. This is an amount comparable to Saudi Arabia's reserves. It expects to develop its oil at a cost of US$35 to US$40 per barrel.
Should the world price of oil drop to this level today's Middle East energy exporters will have been bankrupted and their autocrats ousted.