As America inches closer to energy independence with help from President Trump’s green light for Dakota and Keystone pipelines, and recent oil discoveries in Alaska, OPEC is crumbling.
The low price of oil is hindering OPEC’s efforts to regain control.
Add to that, the fact that America is now EXPORTING oil, even to oil-rich countries, and OPEC is literally falling apart.
Thank you, President Trump!
From Daily Caller
Oil prices remain relatively low despite OPEC’s best efforts.
Current crude prices are around $47 dollars a barrel, which is far less than the $108 a barrel oil was selling for in June 2014. OPEC has been reducing oil output to increase crude prices, but that plan doesn’t seem to be working so well.
“It’s all about the short-term glut that we have to deal with today, with the potential shortage months down the road,” Phil Flynn, an analyst at the investment firm Price Futures Group in Chicago, told Bloomberg. “For the market to establish the fact that it has finally hit bottom, we really have to get the price of oil back above $50 a barrel, which is still a tall order at this point.”
Oil prices will only rise if all of OPEC’s member countries follow the policy to reduce oil production, but some OPEC nations have been ignoring their pledges to do so. This means that although much of OPEC claims it is cutting production, in reality its member countries are exceeding their quotas which prevents the price of oil from falling much.
The U.S. is now exporting more oil than four OPEC member states produce, according to a survey of energy analysts. The U.S. is already outproducing Libya, Qatar, Ecuador and Gabon; in 2017, U.S. companies could ship more oil overseas than those OPEC nation pump out of the ground.
OPEC’s attempt to boost global oil prices follows the organization’s 2014 attempt to depress the global price of oils to counter new competition, largely from U.S.-based hydraulic fracturing, or fracking.
In 2007, America imported about 60 percent of its oil, but by 2014, the U.S. only imported 27 percent of its oil — that’s the lowest level since 1985, according to the U.S. Energy Information Administration (EIA). EIA expects oil production to top nine million barrels a day in 2017.
This huge amount of new U.S. oil means that America is even exporting crude oil to OPEC members.