ప్రపంచ చమురు మార్కెట్లో సౌదీ అరేబియా, రష్యా, అమెరికాల ముష్టి యుద్ధం||Saudi, Russia,US oil Fight
In September, later this year, Opec will complete 60 years of its existence. While, the oil cartel was formed in September 1960, it got real pricing power only in the 1970s. Since then Opec has largely controlled the global price of oil, until shale oil in the US came along.
As British columnist Philip Coggan writes in More: The 10,000-Year Rise of the World Economy: “In the 1990s, a few enterprising wildcatters had attempted to release gas from rock formations deep below the ground in America… The technique worked for oil as well as gas. Thanks to fracking [as the drilling technique came to be referred as], US oil production rose from 5 million barrels per day (mbd) in 2005 to 7.5 mbd in 2013 and 10mbd by 2018." This oil is referred to as shale oil. Towards, the end of 2019, the production was close to 12.8 mbd.
In 2018, the US, thanks to shale oil, became the largest producer of crude oil in the world, after many decades. This huge jump in American production has broken Opec’s pricing power and since 2016, it has had to operate production cuts along with Russia—the other big oil exporter—in order to sustain prices.
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ప్రపంచ చమురు మార్కెట్లో సౌదీ అరేబియా, రష్యా, అమెరికాల ముష్టి యుద్ధం||Saudi, Russia,US oil Fight In September, later this year, Opec will complete 60 years of its existence. While, the oil cartel was formed in September 1960, it got real pricing power only in the 1970s. Since then Opec has largely controlled the global price of oil, until shale oil in the US came along. As British columnist Philip Coggan writes in More: The 10,000-Year Rise of the World Economy: “In the 1990s, a few enterprising wildcatters had attempted to release gas from rock formations deep below the ground in America… The technique worked for oil as well as gas. Thanks to fracking [as the drilling technique came to be referred as], US oil production rose from 5 million barrels per day (mbd) in 2005 to 7.5 mbd in 2013 and 10mbd by 2018." This oil is referred to as shale oil. Towards, the end of 2019, the production was close to 12.8 mbd. In 2018, the US, thanks to shale oil, became the largest producer of crude oil in the world, after many decades. This huge jump in American production has broken Opec’s pricing power and since 2016, it has had to operate production cuts along with Russia—the other big oil exporter—in order to sustain prices.