Wednesday, March 20, 2013
The new oil exporter- The U.S.?
For a change and a surprise, it is now being said that the U.S. due to Shale Oil ( a kind of oil extracted deep inside the earth) and the booming oil states in the U.S. in the near future, the U.S. can become a net oil exporter maybe even rivaling Saudi Arabia. Well if it is true (a big if) then it will be a game changer for the oil industry and to the world, not to mention the economy of the U.S. We are already seeing a big boom in the oil exploration in the U.S. and with the Canadian Oil also supposedly coming to the U.S., maybe we may see a huge Oil input in the U.S. but with such a big economy, I am really skeptical if the U.S. will able to wean itself away from foreign (read Middle Eastern) oil, anytime soon or ever. Just the thought of the U.S. being a new oil exporter is hugely tempting which means it may change the course of the pricing and monopolistic tendencies of OPEC (Organization of Petroleum exporting countries) and those countries may have to adjust to the new elephant in the room. There is no harm in dreaming of this scenario but with this huge Oil boom, the trade deficit that we face each month mainly due to Oil imports can change into trade surplus for the first time in decades making the U.S. more influential in world politics and acting like a true Super Power. The possibilities are endless if it becomes true.