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Thanks to this, reserves of recoverable oil and natural gas in the United States have skyrocketed. This has caused the price of oil and gas to drop significantly. One group that is desperate to stop the price fall is OPEC. They\u2019ve tried everything to kill off American\/Canadian oil and gas production. Now, OPEC is running out of gas. Here are the details from Bloomberg<\/a>:<\/p>\n OPEC\u2019s plan to boost oil prices by cutting production has fizzled<\/a>, yet it has little choice but to stick with it. <\/b><\/p>\n Crude has surrendered all of its gains since the Organization of Petroleum Exporting Countries first agreed production cuts in November. While the group has implemented<\/a> the curbs, a rebound in U.S. shale output and stubbornly-high<\/a> stockpiles show the world\u2019s three-year crude glut isn\u2019t shifting. Even signals from Saudi Arabia and Russia<\/a> that they\u2019ll prolong the supply reductions haven\u2019t staunched the rout. <\/b><\/p>\n Yet OPEC has limited room for maneuver when it meets on May 25 in Vienna to discuss the deal, and is almost certain to persevere because the alternatives look even worse. If it were to deepen the cutbacks, even more shale supplies might come along to fill the gap, according to UBS Group AG. Abandoning the policy and restoring output would inflict the economic pain of crude below $40, Citigroup Inc. predicts. <\/b><\/p>\n \u201cThe risk of a higher cut is that it could trigger too strong an increase in prices and support U.S. shale,\u201d said Giovanni Staunovo, an analyst at UBS in Zurich. \u201cIf they change strategy, Saudi Arabia would lose face. You can\u2019t say you want lower inventories, and after a few months give up.\u201d <\/b><\/p>\n What we are seeing is the collapse of a monopoly. OPEC came along about 60 years ago, and has been run primarily by the Arab countries, led by Saudi Arabia. Thanks to blind stupidity from the United States, OPEC was able to put the screws to us. We were forced to defend them, and couldn\u2019t give the full boat support to Israel that they should have, as the only democracy in the region. Now, with shale oil and fracking, along with OPEC\u2019s utter incompetence in upgrading their own oil infrastructure, they are beginning to understand that soon, the United States will ignore them.<\/p>\n The selloff came even after a statement from Russian Energy Minister Alexander Novak that his country was \u201cinclined toward\u201d an extension of production cuts into the second half. He was echoing his Saudi counterpart Khalid al-Falih, who said on April 26 that there\u2019s a preliminary consensus to prolong the agreement with backing from other OPEC nations such as Kuwait and Iraq. <\/b><\/p>\n Now how could I have forgotten about the Russians? Russia is sitting on oceans of oil. The problem is where it\u2019s located. The Siberian oil fields are not all that easy to support, thanks to the cold, and a complete lack of roads and rail lines. There is also the problem of Russia, just like the Arabs, using oil as their primary means of supporting their economy. Putin has been spending the money on tanks and planes, not on expanding the Soviet<\/i><\/span> Russian economic base.<\/p>\n With OPEC already showing near-perfect compliance in delivering its pledged 1.2 million barrel-a-day production cut and an extension looking likely, the group has little ammunition left in its battle to raise prices. <\/b><\/p>\n \u201cThe OPEC deal was doomed to failure from the very beginning,\u201d said Eugen Weinberg, head of commodities research at Commerzbank AG. \u201cIf they deepen the cut, the effect will be short-lived. OPEC will find itself in the same position again in six months time, but non-OPEC would get more market share by then.\u201d<\/b><\/p>\n [youtuber youtube=’http:\/\/www.youtube.com\/watch?v=vsa1ZvzFgvU’]<\/p>\n While the International Energy Agency still predicts a rapid reduction in the supply glut in the second half of this year if OPEC maintains its cuts, data available right now show few signs of success.<\/strong><\/p>\n I looked up the IEA. As I thought, it\u2019s based in Paris and is populated by over-educated, privileged elitists. In other words, Clueless Eurotrash.<\/p>\n Global fuel stockpiles may have actually increased during the first quarter, the IEA estimates. In the U.S. — the world\u2019s biggest consumer — crude inventories are dropping, but remain near record levels.<\/strong><\/p>\n The levels are dropping for a simple reason. President Trump is working to Make America Great Again. People are finding jobs and they need to get to them. Take myself. Last year I was burning through about a tank of gas every 6 weeks. Now, since I have to drive to work, I\u2019m burning through about a tank every week to ten days. However, that doesn\u2019t mean that OPEC is going to profit from this.<\/p>\n Meanwhile, American production has roared back, growing by 523,000 barrels a day this year to the highest level in almost two years as investment returns, according to the Energy Information Administration. <\/b><\/p>\n When OPEC started playing their games to wreck the oil production system in the United States, the oil companies started making preparations. They began by capping oil wells that weren\u2019t profitable and storing or selling the equipment. Once the situation changed, they uncapped the wells, bought new, more efficient equipment and started pumping and fracking again. What\u2019s worse for OPEC? Those wells are now cheaper to pump then they were a couple of years ago.<\/p>\n There\u2019s a sense of \u201cdejection\u201d in the market that the cuts aren\u2019t working, but OPEC can still succeed if it stays the course, according to Energy Aspects Ltd. <\/b><\/p>\n \u201cWe still think the market does rebalance by the end of this year as long as OPEC continues its production cuts,\u201d Amrita Sen, chief oil analyst at the London-based consultant, said in a Bloomberg television interview. \u201cI don\u2019t think they have many options.\u201d<\/b><\/p>\n Oh I do hope that OPEC \u201cStays the course.\u201d It will mean even more energy production jobs in the United States along with new customers. This is something the idiots in Europe and the Middle East don\u2019t understand. The Free Market works. If potential customers can\u2019t get what they need from OPEC at a decent price, they will look elsewhere. Guess who\u2019s going to win that game?<\/p>\n Thatisall<\/p>\n ~The Angry Webmaster~<\/b><\/i><\/p>\n [yasr_visitor_votes size=”large”]<\/p>\n","protected":false},"excerpt":{"rendered":" Good day all. If you have followed the Fracking debate, you will know that the process is used to produce oil that normally wouldn\u2019t be economically viable. As the technology has matured, the costs have plummeted. Continue reading <\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n<\/a><\/p>\n