The New Geography Of Oil

Jul 9 2012 @ 2:54pm

Paul Miller sees a sea change:

The Middle East dominates the currently proven, conventional and commercially viable reserves, but these reserves account for less than 10 percent of the total oil in the world. Once unconventional methods become commercially competitive, the Middle East will be dwarfed by Canada, the United States and Venezuela.

Why this is important:

That means the central goal of U.S. foreign policy in the Middle East will essentially be achieved: no power will be able to threaten the United States with unacceptable leverage over the American economy. That is because oil itself will be less important, and the world oil market will be more diffuse and diverse. The importance of this development cannot be overstated. It is a tectonic shift in the geopolitical balance of power, a strategically pivotal development only slightly less momentous than the fall of the Soviet Union. It is the slow-motion collapse of the Middle Eastern oil empire.

(Hat tip: The Compass)