Saudi Arabia and OPEC will eventually fall at the hand of their own weapon, oil. The US has more oil than it knows what to do with at this time. This is just one area we are talking about. The Bakken is just one oil play in the lower 48. Let’s bring Texas into the picture where it’s home to many oil plays that are prime grounds. Speaking of Texas, the Barnett just broke massive news about newly estimated reserves of twice the original numbers. According to a recent U.S. Geological Survey Assessment (USGS), the Barnett shale has estimated mean volumes of 53 trillion cubic feet (TCF) of shale natural gas, 172 million barrels of shale oil and 176 million barrels of natural gas liquids. And that folks, is just one of the several oil plays in Texas. Let’s not forget the Eagle Ford in south Texas or the Permian Basin and what’s happening there.
We will not be controlled by OPEC anymore. We (US) will be the dominant force in the oil and gas industry, it’s only a matter of time. Our economy is much more diverse as opposed to Saudi Arabia. Their economy relies on oil. We do not. Who do you think will last longer? Sit tight, and watch the events unfold. America is the new powerhouse in the oil and gas industry, thanks to the shale oil revolution.
The sooner the price wars are over the better. When Saudi and OPEC wave their white flags, the markets will steady, and the prices will rise. We will go back to an all out wild west oil boom across America. It’s not a matter of if at this point, it’s a matter of when.
Soon after the deal was reached to lift the ban, company stock in a few major operators have steadily been climbing. As of late, the dollar is falling. When the dollar falls, oil price goes up. Some said the oil patch would stay stagnant throughout 2016, but with this late news about oil exports beginning right away it looks to be the opposite. We will pray for all involved in the oil and gas industry that the future plays out in their favor. The timing of all this in the last few days is amazing. As we have seen in the past, things can happen very fast in the oil and gas industry. Let’s get the people back to work as soon as we can.
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