More Oil Found in Yemen

I get excited every time I see these reports and there have been a number of them recently regarding minerals, oil, gas etc. The more natural resources Yemen can push out on to the open market the better. Yemen greatly needs the capital to push for the infrastructure reforms and development projects on the horizon. 

 

Bye Bye OPEC

“What are they thinking? They’re thinking that it’s running out, it’s running out and 90% of whats left is in the Middle East. Look at the progression, Versailles, Suez, 1973, Gulf War 1, Gulf War 2. This is a fight to the death. So what are THEY thinking? Great! They’re thinking keep playing, keep buying yourself new toys, keep spending $50,000 a night on your hotel room, but don’t invest in your infastructure… don’t build a real economy. So that when you finally wake up, they will have sucked you dry, and you will have squandered the greatest natural resource in history…Twenty years ago you had the highest Gross National Product in the world. They think that a hundred years ago you were living in tents out here in the desert chopping each other’s heads off and that’s where you’ll be in another hundred years.” –Syriana

On the 40th anniversary of the Oil Embargo, Foreign Policy Magazine published an amazing piece by Amy Myers Jaffe & Ed Morse titled The End of OPEC. I found this article to be a great piece, which sunk in with fangs. We have been seeing a large pool of literature documenting not only the fall of Middle East monopoly over petroleum but specifically the rise of the United States’ in the natural energy market. As an American this makes me and my brokerage account happy; as a global citizen with friends the world over, this makes me delighted considering the ramifications that are due to pan out. As the article illustrates, much as Silicon Valley ‘democratized’ information, there is a hope that these developments will also liberate natural energy the world over.

Read the article. It is stellar.

United States – The World’s #1 Oil Producer

Reuters recently reported that “the United States will become the world’s largest oil producer next year – overtaking Russia – thanks to its shale oil boom which has transformed the global energy landscape.” The ramifications of this are fairly impressive. To begin with, it is critical to note that the last decade has shattered the myth that the US is dependent on Middle East oil. Yet, unfortunately the myth is persistent and many people believe that the West efforts in the Middle East are to effectively ‘steal Arab oil.’

Hopefully, the dynamics between the US and its former oil providers in the Middle East will give the US some room to increase pressure on key Human Rights issues and other critical topics that hitherto the US was limited with, diplomatically. This independence may give the US some breathing room to export its foreign policy preferences without being concerned that there may be petrol related backlash.

This scenario will also provide the much needed economic development to pull the US out of its final stages of its economic downturn from the past several years – effectively lifting the US back to an economic powerhouse that it was during the pre-crash days.