New Sources Of Oil--And The Decline of Saudi Influence

Some are even talking about an era of 'energy independence' for the Americas, based on the immense conventional and unconventional hydrocarbon resources located there. While that might be stretching the point, it is clear that the abundance of resources and the more 'balanced' geographical distribution of unconventionals have reduced the much-hyped concerns over 'energy security', which once served as the undercurrent driving energy policies and dominated the global energy debate.
Al-Falih, president and CEO of Saudi Aramco

Israel is not the only country that will benefit from new oil technology--and you don't even have to be a Middle East country to reap the rewards. In fact, the next oil cartel may be nearby:

The outline of a new world oil map is emerging, and it is centered not on the Middle East but on the Western Hemisphere. The new energy axis runs from Alberta, Canada, down through North Dakota and South Texas, past a major new discovery off the coast of French Guyana to huge offshore oil deposits found near Brazil.

...The new hemispheric outlook is based on resources that were not seriously in play until recent years — all of them made possible by technological breakthroughs and advances. They are “oil sands” in Canada, “pre-salt” deposits in Brazil and “tight oil” in the United States.

So just how realistic is the prospect of the West actually weaning itself off of Middle Eastern oil? Saudi Arabia, for one, is taking the possibility of Western oil independence very seriously--more than that, Saudis face waning power in North America:

While the green movement naively harbours hopes it will be able to shut down unconventional oil and gas development, in Saudi Arabia they are already contemplating a time when North American fossil fuel will replace their oil.

Looking past the din of protesters, state-owned oil giant Saudi Aramco is resigned to the fact that its influence will wane because of the massive unconventional fossil-fuel development underway in North America. As such, Saudi Arabia has no plans to raise its production output to 15 million barrels per day from 12 million, said Khalid Al-Falih, the powerful chief executive of Aramco.

No mention of how this will effect the Gulf states.

Will this have an effect on the coffers of the Wahabis--and other Islamic extremist groups which have been able to take advantage of ready funds for buying both real estate--and influence--in the US and elsewhere?

Hat tip: Instapundit

Technorati Tag: Saudi Arabia and Shale Oil.