Results Of 1973 OPEC Oil Embargo
Introduction…The 1973-1974 OPEC Oil Embargo on the United States caused the price of oil to nearly double, high inflation, high unemployment, and shortage of gasoline resulting in long lines at the service station. The pledge of nearly every U.S. President since President Richard Nixon has been U.S. energy independence.
Let’s briefly review a few of the oilandgasinsider.com articles that demonstrates this shift in economic dependence.
- Texas Oil & Gas Production in Expansion Cycle
- Why Billions Are Pouring Into U.S. Shale
- Private equity funds raised $19.8 Billion for US oil ventures first quarter
- Even though price is still around $50 per barrel because producers have slashed up to ½ the cost of pumping oil from 2 years ago, making new production profitable
- OPEC On The Brink of Collapse
- Russia Cutting Production as U.S. Shale Escalates
- Dumping Billions in Canadian Assets For Permian Basin
- Marathon acquired 70,000 acres in Permian and 51,500 acres for $1.1 Billion
- Why Major Oil Company Goes Big On US Shale- ExxonMobile –major oil companies all but abandoned new US production several decades ago.
- Texas Fifth Straight Double Digit Jump in oil rig count on February 7, 2017
- Nearly $1 Trillion Worth Of Oil Found In Texas, Largest Deposit Ever Discovered In US.
- Permian Basin producing oil and gas since 1920 so infrastructure is well developed reducing production costs. And some are still claiming the largest deposit ever discovered in the US
Conclusion…The United States did oust Saudi Arabia as the world’s largest oil producer May 2016. However, Saudi Arabia regained that title four months later. But, just as important, the United States holds 264 billion barrels of oil of which one-half is in shale. This total exceeds both Russia and Saudi Arabia.
To conclude the U.S. is “No Longer Dependent on OPEC” may be true finally after 45 years of Presidents pledging to make the United States energy independent. This is Bill Moist, MS, CPA
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