Will Shale Oil Solve the US Energy Tragedy?

Are US shale extractors politically motivated not to increase their extractions yet?

When President Joe Biden first called on OPEC to increase production earlier this year, he received an angry response from Texas Governor Greg Abbott, who curtly told him to "back off" and let American companies take care of the supply problem that was pushing fuel prices higher. The embarrassing relationship between the current Washington administration and the politically right-leaning oil industry has been repeatedly highlighted in the media alongside Biden's anti-oil moves, such as those related to the Keystone XL pipeline and the temporary moratorium on oil and gas drilling on federal lands.

But even politics, at some point, must bend to the economy and bjusiness, so the producers of shale oil should return to producing massively. Why don't they, or don't they yet?

The reasons are essentially two:

• first of all they make big profits from the current high oil prices and this is useful as they have to recover from at least 12 months of true famine;
• they know very well that the real King of the market is Saudi Arabia, so it is not wise to provoke, with excesses on the market, against a much more gifted competitor.

If we add political motivations to this, we can understand that the solution to US energy problems and high prices will not come immediately, indeed it will take time. And if Biden wasn't there, it would be even better.

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Article Will Shale Oil Solve US Energy Tragedy? comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lo-shale-oil-risolvera-la-tragedia-energetica-usa/ on Fri, 19 Nov 2021 07:00:23 +0000.