It’s gratifying to me to see the United States and Canada standing up to other oil-producing regions in the ongoing battle to control the price of fossil fuel.
According to an analysis on MSN.com, the North Americans are winning the fight.
The Organization of Petroleum Exporting Countries recently declined the opportunity to reduce production. The non-action sent Brent crude to new low prices. According to MSN: “The Saudis appear to be spoiling for a fight, trying to find out exactly how cheap oil must be to force surging U.S. shale-oil production to seize up like an unlubricated engine.”
The gratification comes in the knowledge that North Americans finally seem to understand the need to conserve energy and to use alternative sources of energy. Yes, the production of shale oil in North Dakota and Montana also is helping boost oil supplies that have been outstripping demand; the result has been the plummeting prices we’ve seen across the country.
Shale oil is less expensive to produce than when it first came onto the oil-production scene, according to MSN.
Add the falling production costs of shale oil and the growing use of alternative sources — wind, sunlight and hydropower, to name just three — then OPEC’s influence on world oil price becomes diminished.
We’ve come a good distance from the days of the Arab Oil Embargo, correct?