Austin wrote:Any one who thinks US can influence Energy market by magically bumping up productions needs to know two facts.
1 ) US is a net importer of energy so any export is bad for its domestic market
2 ) Most of US oil production come from Shale and Shale even with high oil price and cheap credit is a loss making business
Why Is The Shale Industry Still Not Profitable?
Only OPEC and Russia can extract and product oil at a price where it is profitable and stable production is ensured , hence the OPEC/OIl deal infulences oil market price and not other entity mostly certainly not the US , reason US has asked OPEC to increase production to bring down cost.
US oil exports are on the rise. This coupled with doing coup in SA to keep SCO proxies out of gov ensures that OPEC will trade in dollar. Of course with prices now rising, Russia is breathing easier but India and China will have to shore up their reserves. US will try to intervene to keep the price from rising too quickly.
I give petrodollar 10-20 years max. With Canada, Gulf of Mexico, etc. at peak production, and Russia, China, and India to some extant able to provide security guarantees to gulf regimes, why the fck should the rest of the world keep cheapening their currencies and exporting to the US?