Enjoying low gas prices? How long will they last? In this edition of The Heartland Daily Podcast, Dr. Bud Weinstein, Associate Director of the Maguire Energy Institute and research fellow Isaac Orr talk about the Keystone Pipeline and the factors that influence the global prices of oil.
The world has changed. Although few yet understand it, the revolution in the production of oil and natural gas from shale has altered the course of global energy, affecting most of the world’s people. This is not a short-term event. Citizens, industries and nations will be impacted for decades to come.
OPEC’s Secretary General Abdulla al-Badri made headlines when he announced that the oil price may have bottomed out—indeed, we had four straight days of increase—and predicted “you will see more than $200 when it comes to future oil prices.”
After years of rising gasoline prices, people are puzzled by the recent drop that has a gallon of gas at levels not seen in nearly four years. Typically in times of Middle East unrest, prices at the pump spike, yet, despite the violence in Iraq and Syria, gallon of gas is now at a national average of $3.
Thanks mainly to the shale revolution, oil production in the U.S. hit a 28-year high last month while imports were at their lowest levels since 1995. Consequently, prices have fallen 15% since June, and Saudi Arabia has cut production by 400,000 barrels a day — providing further evidence that OPEC no longer has the power to set prices.
While we weren’t paying attention, post-war Iraq grew into a major force in the global oil market. Reaching a 30-year high, its production and exports have climbed steadily since 2011—making Iraq the second largest producer in OPEC, the seventh globally. The International Energy Agency (EIA) has forecast that Iraq has the fifth-largest proven oil reserves.
Several Hollywood elites were recently caught red-handed on videotape, agreeing to take money from a Middle Eastern oil sheikh for another anti-fracking movie. Their actions were shameful, but they felt no shame – only anger at the folks who caught them in the act. Indeed, the ironies are matched only by their hypocrisy and disdainful disregard for the consequences of their anti-fracking fervor.
Following my appearance on the Daily Show, I’ve received emails and phone calls from people who don’t agree with my views about energy and the advantages America’s energy abundance provides—benefits that drive both progress and prosperity.
October 17 was the fortieth anniversary of the oil embargo slapped on America by the Organization of Petroleum Exporting Countries (OPEC). That action changed the entire geopolitical map by taking the power from the United States and giving it to the Middle East. As a result of the embargo, America slid into a serious recession.
Last week, Bob Goodlatte (R-Va.) and other lawmakers introduced legislation in the House of Representatives calling for major changes in the Renewable Fuel Standard (RFS). The RFS is the reason[…]