All about oil marketing of the world HD Documentary

By leaving oil prices to the market, Saudi Arabia and the emirates also passed the responsibility as de facto swing producer to a country that hardly expected it — the United States. This approach is expected to continue with the accession of the new Saudi king, Salman, following the death on Friday of King Abdullah. And it means that changes in American production will now, along with that of Persian Gulf producers, also have a major influence on global oil prices. America was once, by far, the world’s largest oil producer and exporter, and its swing producer. The Texas Railroad Commission determined “allowable” levels of production for Texas, the Saudi Arabia of the day. But by 1970, United States oil production had reached its high point of 9.6 million barrels per day and began to decline. The United States began to import more and more oil. By 2008, its own oil production was down almost 50 percent from the high point. Oil prices reached $147 a barrel, and fears that the world’s oil production had peaked and that we were beginning to run out of oil had become pervasive. Quietly, though, an unconventional oil and gas revolution was beginning to pick up speed in the United States. It yoked together two technologies: hydraulic fracturing and horizontal drilling. The impact was measured first in the rapidly growing production of shale gas, which now makes up about half of total American gas. This “shale gale” catapulted the United States ahead of Russia to become the world’s No. 1 gas producer. Then around 2010, the same technologies started to be seriously applied to the search for oil. The results were phenomenal. By the end of 2014, oil production in the United States was 80 percent higher than it had been in 2008. The increase of 4.1 million barrels per day was greater than the output of every single OPEC country but Saudi Arabia. Today, American output is almost back to where it was in 1970. On top of that was a million-barrel-a-day gain since 2008 from the Canadian oil sands. The chimera of “energy independence” began to look more tangible, at least for North America. This revolution also turned out to be a big boost for the American economy, creating jobs, improving the country’s competitive position and drawing in over a $100 billion of new investment. Only rarely has the global oil market seen production increases on this scale this fast. The last time was in the early 1980s, when new supplies from Mexico, the North Sea and Alaska created an oil surplus that led to a price crash. This time, several things postponed a price collapse. One was the growing consumption in the developing world, led by China. Another was turmoil in Libya, South Sudan and other countries that reduced supply. Over a million barrels per day were also taken off the market by sanctions imposed on Iran. Without that big surge of shale oil from the United States, it is highly likely that those sanctions would have failed. Prices would have spiked, countries seeking cheaper oil would have broken ranks — and Iran might not be at the nuclear negotiating table today. Thanks for watching * Subscribe for more Videos * Like & Share * go to our website http://vmpublishing.com/ * Share your ideas and comment