Peak Cheap Oil is gone.."From Russia With Love." OPEC as we know it is done.
-2010 saw the World oil consumption out pace supply by 5 million barrels per day. First time in history.
-China and India demand is rising daily as these leaders have to make good on promises to raise standards of living for their people.
-Saudi Arabia is the only OPEC member with spare capacity from 10million barrels per day up to 12million. The additional 2 million is used up by the 1.3 million taken off the market from Libya. Another world event can use up the rest and isn't a case of "if" but "when."
-No more major finds except for Canada's oil sands and Brazil's deep water both of which are extremely expensive to produce.
So, what is the US to do?..
Time for Use of Strategic Petroleum Reserve? It is an option that might find favor with some people. While this may be in the cards sooner rather than later by the Obama administration, these resources have been kept aside for a time when there is no more oil to be found under the surface of the earth anywhere all over the world. Though times are dire, that situation still isn't here. Besides, with only 750 million barrels in the salt domes of Ease Texas and Louisiana it would only last about a month.
Russia Steps Up?!
The best option then, seems to be to find another source for oil and natural gas imports. The country that stands to gain with respect to the turmoil in the Middle East is Russia. OPEC's loss might prove to be the Russian's gain. The man of the moment then is Vladimir Putin. He has already put himself in place as the one man that the West can turn to. Gazprom, Russia's largest producer of oil and natural gas resources has been directed to open up their pipelines to their rivals. Companies like Surgutneftegaz stand to gain from any business that the U.S. and Europe direct at them. Surgutneftegaz is the fourth largest oil producing company that stands apart as it is in no debt whatsoever. They have now opened up their distribution channels and intend to focus on exports to the world.
With the Arctic oil opening up and the Yamal peninsula offering itself up, Russia is leading the pack to become the world's largest oil exporter. After the history that they share, the U.S. might loathe the idea of being beholden to Russia but Russia seems to be stepping forward as a changed country.
Conclusion A change is on the cards. For the countries of the world, Russia might just be the option that they have been looking for. With the upheaval in the Middle East and the might of the strong cartel created by OPEC dwindling, finding another option at the earliest is not just important but indispensable.
DRILL HERE...DRILL NOW!! RELEASE OFFSHORE PERMITS AND CONTINUE TO FUND ONSHORE DOMESTIC PRODUCTION WITHOUT UNDUE GOV'T REGULATION. US HAS MORE NATURAL GAS THAN ANYONE IN THE WORLD.
One more thought..CHINA uses 9.1 million barrels per day and holds most of our debt and credit. We use 20 million barrels per day. What's wrong with that picture. All they have to do is strengthen their currency and we are screwed!
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