Iran’s historic deal with America has been the subject of a lot of talk lately. However, it seems none of the media channels are reporting why Iran is agreeing to make this deal with the US, and what it REALLY means. Watch this video:
What few people seem to appreciate is that America is on the verge of an oil boom and that U.S. oil independence isn’t just a dream anymore.
Advances in drilling technology and what has become known as “fracking” or “shale” has allowed the US to have access to oil reserves that were previously not available.
I spoke to one of British Petroleum’s oil analysts in October and he told me that America will soon outpace Saudi Arabia in oil production by the year 2017. But most people seem to be in complete denial about this.
The Wall Street Journal reported back in May that the oil boom in the US will most likely divide OPEC countries such as Iran and Saudi Arabia.
Iran knows that its oil is not going to be in demand as it used to be. According to the Journal: “How much oil Iran produces just doesn’t have as much importance as it did in the past.”
My belief is that sanctions on Iran, the fall in demand in Persian Crude Oil and the prospect of an oil-independent US has a lot to do with why Iran is taking this decisive measure to form a deal with the US.
What is YOUR opinion? Leave us your comments below.
Some geologists say that shale wells start strong and fade fast, and an ever-increasing number of wells are needed to just produce the same output.
http://www.businessweek.com/articles/2013-10-10/u-dot-s-dot-shale-oil-boom-may-not-last-as-fracking-wells-lack-staying-power
America is heading for oil independence? since when? How come we never heard about this?
I think you’ve bought the hype. Alessio.
Fracking isn’t all it’s cracked up to be. It pollutes water aquifers (which causes problems in itself) and the environment. Fracking projects seem great at first, but they rapidly drop off in production. In most cases, after only a year or two. Take Chris Martenson’s Crash Course and learn something about Peak Oil. When it costs 9 barrels of oil to yield 10 barrels of oil, people soon realise that the game is up. All the low hanging fruit has been picked. Solar is the way forward. And for that we need silver.
http://oilprice.com/Interviews/Dont-Fall-for-the-Shale-Boom-Hype-Chris-Martenson-Interview.html
This makes a lot of sense.
Alessio,
I somehow agree with your hypothesis regarding US oil independence – or rather US mid-east oil independence, since Canada will remain a possible major supplier. However, I think US-Iran deal can be viewed from the angle in which US is not so dependent on Saudi/Gulf countries, which have put the main pressure on US not to deal with Iran in the past. Iran is a huge potential market, for the US and other Western countries, and is willing to open up its doors. So I think the deal is more because of US freeing itself from external pressure.
You didn’t like my comment?
Hello,
interesting explanation you demonstrated in your video, I would humbly suggest to ask some questions about the components that are being used to perform oil fracking. you might be interested in asking sacramento about it, county reps and senators are strongly against oil fracking because of two main reasons:
A- six percent of the chemical mix used to push through the earths crust is remained unknown “although some lobbyist echo that its a combination of water and make-up”
B- not many are aware of the environmental damages to the US tectonic plates especially in California.
best wishes
sultan.
I really struggle to believe this oil independence meme, these new wells deplete in a year or two, and the EROEI is terrible and declining. just not going to happen IMO.
The OilDrum.com – The Myth That the US Will Soon Become an Oil Exporter
Quite possible. Seems US is even forced to do so. Printing money they would eventually make it worthless. So, in few years, who would take this green trash as a payment for real tangible commodity which is crude oil? Certainly nobody. When US has its own sources they will be “courageous” enough to destroy the dollar without a bit of anxiety about “where can we get an oil now?”
They culd be bluffing, to get cheaper oil from Iran and make more money by selling it in Europe, even if it’s truth That usa going to be totally independent, then for how long? and what impact in public price it will have, it’s just another way to manipulate markets