Posted August 30, 2013
Benefits of Fracking Will Be Tested in Syria Attacks
Forbes: Oil prices are surging on concerns that a U.S.-led attack on Syria could disrupt global oil supplies. West Texas Intermediate crude traded at $110.45 a barrel on the New York Mercantile Exchange this morning, after rising more than $3 a barrel on Tuesday. Less than two months ago, oil sold for less than $100.Gasoline prices have risen the most in six weeks at a time when forecasts had indicated they would be falling because of seasonal decline in demand.
It’s a pretty typical market response to geopolitical unrest in the Middle East. The concern, of course, is that any escalation of the Syrian conflict will expand to include other oil-producing nations, particularly Iran. Iran has the power to control the all-important Strait of Hormuz, through which about 17 million barrels of oil pass each day — roughly one fifth of the world supply.
But this time things are different, at least from the U.S. perspective. The implications of a supply disruption are muted because domestic production is at a 20-year high, driven by the hydraulic fracturing boom. U.S. inventories are flush.
Read more: http://onforb.es/15jNSjt
More industry news:
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- LTE: Humanizing the Numbers in Fracking Debate: http://bit.ly/14HG9t7
- Texas Oil Output Almost Doubled in the Last Two Years, Reached 32-Year-High in June: http://bit.ly/145NO64
- Economist: Colorado Economy Would Benefit from LNG Exports: http://bit.ly/195djTd
- Montana Joins Other State to Dispute BLM Fracking Rules: http://gftrib.com/15ECJHl
- Oil Production in Two Permian Basin Plays Could Reach 1M Barrels Per Day By 2018: http://bit.ly/1dxSZzP
ABOUT THE AUTHOR
Mary Schaper is a Digital Communications Manager for the American Petroleum Institute. She previously worked on Capitol Hill for the Senate Energy and Natural Resources Committee as Digital Director and for Senator Lisa Murkowski. Before coming to D.C., she spearheaded digital strategy for Murkowski's successful Senate write-in campaign in 2010. Schaper enjoys traveling and taking in the local culture alongside her husband, their son and loyal springer spaniel.