Shale Oil Gas Pitches US Against Saudi Arabia – Analysis | Eurasia Review

Shale Oil Gas Pitches US Against Saudi Arabia – Analysis | Eurasia Review:



"Shale oil and gas has been labeled a game changer. Statistics would suggest that, yes, the new technologies and discoveries associated with hydraulic fracking change the energy picture and economic outlook, in particular for the United States, but less so than predictions would have it a year or two go.



The greater impact won’t be on the US economy, but rather US-Saudi relations and stability for the Middle East. President Barack Obama met King Abdullah March 28, and both leaders recognize that the geopolitical ground shaped by their common interest in stable oil prices has shifted, creating a new imbalance that could spill over into Mideast security policy.



Estimates for the impact on US economic growth vary from 0.2 percentage points per year to a marginal hike of the growth rate. Petrochemical exports have risen threefold from 2006 to 2012, but account for not more than 1.2 percent of US gross domestic product. The trade balance has improved by a modest 0.1 to 0.2 percentage per year, yet still is in deficit to the tune of around 3.5 percent of GDP."



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