From: Lawrence Solomon, Financial Post (edited)
The US has a lot of shale oil.
Citigroup says that in 5 years the US could eliminate all oil imports from the Middle East and other hostile suppliers.It has already halved its oil imports from 2006 levels.
The International Energy Agency says that by 2017 the U.S. will become the world’s biggest oil producer.
By 2035 it will eliminate almost all oil imports (including from Canada).
This industry has a 26% per annum growth rate.
It has an estimated 33 billion barrels in the ground -- up from the 2007 estimate of 4 billion barrels.
Estimates of recoverable shale oil reserves have climbed to as much as 1.5 trillion barrels.
PwC believes believes we will be seeing will lower oil prices -- possibly by US$50 a barrel -- boosting the global economy by as much as US$2.7-trillion a year by 2035.
The biggest winners are India and Japan, whose GDP could rise by an extra 7%.
They are followed by the U.S. and the eurozone -- which could see 5% rises.
Russia and the Middle East “could see a significant worsening of their trade balances by around 4% to 10% of GDP,” PwC says.
According to Citigroup oil prices could drop below the break-even levels that many countries need.
Russia may not be able to balance its budget.
Iran, considered the world’s chief financier of terror, would need to scale back its nefarious activities.
Venezuela, which finances anti-American activities throughout Latin America, would likewise be curbed.
Saudi Arabia might not be able to finance the vast complex of mosques and madrasas it supports in Pakistan and in the West.
However, climate-change regulations could snuff out coming oil revolution notes an HSBC study.
The U.S. wants an atmosphere limited to a carbon concentration of 450 parts per-million.
That would allow only 1/3 of the world’s current proven reserves to be burned.
Numerous oil projects might be cancelled.
HSBC warns that oil and gas majors could lose up to 60% of their market value as their reserves would be “unburnable”.