There was a report in yesterday’s The Times (sorry no link, Times Online is a pay site) regarding the soaring production of shale oil in the US. BP forecasts that this year the States will overtake Russia and Saudi Arabia as the world’s largest producer of oil, most of it from rising shale output. Understandably, OPEC is not amused and will have to cut production to avoid a collapse and keep prices steady.
The loss of hegemony for OPEC in the oil market can only be good for consumers. Analysts predict that the price of a barrel of oil will drop by 20% in the next decade. Europe seems to be lagging behind in the development of shale reserves because of environmental concerns, fracking bans and lack of infrastructure.
The shale revolution has thrown on its head, for the time being anyway, the general consensus that global oil production is…
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