Five years from now, U.S. and Canadian oil supplies will outstrip projected demand, says a new report from Citigroup analyst and respected commodity prognosticator Edward Morse. While fracking continues to ramp up domestic oil and gas production, demand for oil is waning as the U.S. shifts to cheap natural gas and makes strides in efficiency. As CNBC tells us, ”In the past six years, oil imports into the United States have been cut in half, after peaking in 2006.”
As the U.S. energy future brightens, the petro-states’ prospects dim:
The shift could sharply reduce the price of oil, and therefore limit the revenues of the producing nations of OPEC, as well as Russia and West Africa.
“OPEC will find it challenging to survive another 60 years, let alone another decade,” the report [said].
To realize this production boom, the energy industry’s near-term challenge is moving the U.S. and Canadian oil that is locked in the heart of the continent because of insufficient pipeline transportation. [...]
Over half of the oil coming down from North Dakota has to travel by train because of a lack of pipelines. Investments in energy infrastructure will keep this revolution rolling, making the U.S. stronger, richer, and safer.
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