[size=36][size=33]The Wall Street Journal: How Did America Break Opec?[/size]
[/size]Bertha News Agency160[ltr] 2018-12-15[/ltr]
"Do you remember when the American political class was concerned about the" peak oil "and dependence on foreign energy?
For the first time in 75 years, the United States last week became a net exporter of oil, with OPEC arguing how to respond to growing US energy gains.
US crude oil production surged 20 percent in a year and nearly tripled in a decade thanks to advances in hydraulic cracking and horizontal drilling, the newspaper said.
It says US output is rising at its fastest rate in a century, and points out that the United States overtook earlier this year both Saudi Arabia and Russia as the world's top oil producers.
OPEC has dominated almost six decades of oil markets by setting production quotas among its 15 members and has flooded the oil market in late 2014, it said.
The US Congress expanded the shale oil market in late 2015 by lifting the export ban, and US crude oil exports have since risen to 3.2 million barrels per day.
Many US producers say they can make profits even when the price of a barrel of oil is $ 50, and even when the price of a barrel drops to $ 30 in the most productive regions of the country.
But most Opec members need prices ranging from $ 70 to $ 90 a barrel so they can balance their budgets.
The US oil shale hammer has become a stalemate for OPEC, especially for Saudi Arabia, which faces a large budget deficit as Riyadh tries to contain Iranian influence in the Middle East.
In the past, US politicians have sought to secure energy independence in their country by imposing price controls, ethanol-related bans and a ban on oil exports. But politicians and the Organization of the Petroleum Exporting Countries should note that America owes the new energy boom to innovation in industry, private ownership and a free market.