Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

GOLDMAN: The Shale Oil Revolution Is Real, And It Will Have A Massive Impact On The Global Economy
TBI ^ | 12-5-2012 | Rob Wile

Posted on 12/05/2012 8:10:11 PM PST by blam

GOLDMAN: The Shale Oil Revolution Is Real, And It Will Have A Massive Impact On The Global Economy

Rob Wile
Dec. 5, 2012, 7:55 PM

We are seeing calls that, thanks to shale drilling, the U.S. is poised to become the world leader in oil production, leading some to begin invoking "Saudi America."

Today, Goldman Sachs analyst Kamakshya Trivedi, weighed in on the global macro implications of this phenomenon in a note titled: The shale revolution is changing the global energy landscape.

The note actually goes further, talking about how the entire economic landscape could potentially change.

The main impact, they write, is that oil prices will no longer prove a brake on growth:

...shifts in production are gradually loosening the oil price constraint that has been a persistent feature of the global economy. If global demand growth can recover, the risks that it will be choked off by rising oil prices are receding.

This will produce a knock-on effect for household incomes in the West, while blindsiding petro-states:

The drag on household incomes in the developed world from this source should end.

The flipside of the improving terms of trade for these consumers, of course, is a less friendly picture for producers and producing countries, where the sustainability of spending based on sustained high oil prices may

(snip)

The lion’s share of this would come directly from improving net energy exports, similar to the forecast increase of $136bn for net imports from our Energy team over this period, with a smaller increase coming from improved competitiveness of US manufacturers.

They conclude by depicting just how truly tectonic America's shale story can be — the third-largest on record:

Goldman Sachs

But with one key caveat: " scaled relative to a $15trn US economy, the impacts look a lot smaller."

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; gas; oil; oilboom; shale
Happy Days Are Here Again?
1 posted on 12/05/2012 8:10:18 PM PST by blam
[ Post Reply | Private Reply | View Replies]

To: blam

It would be nice if we could tell the Saudis to pound sand and Iran’s mullahs saw their income drop so much they couldn’t fund terrorism.

Come to think of it, that Chavez guy, if he’s still around, may be looking for a new job too. Russia’s big money maker won’t be. They can kiss their military modernization plans good by.

Let’s do it!


2 posted on 12/05/2012 8:17:52 PM PST by meatloaf (Support Senate S 1863 & House Bill 1380 to eliminate oil slavery.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

The big implication isn’t that the US will be producing more, but that there are far larger recoverable reserves and production opportunities around the world. The US is surely not the only country with a Bakken-type formation. Petroleum production opportunities are probably nearly ubiquitous. This stuff will get exploited at some point, but even the knowledge or suspicion that its out there will make oil shock threats much less likely.


3 posted on 12/05/2012 8:18:39 PM PST by buwaya
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Ping.


4 posted on 12/05/2012 8:18:48 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cringing Negativism Network

Ping.


5 posted on 12/05/2012 8:22:11 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Ya gotta know that this is like a massive case of acid reflux for The Messiah!


6 posted on 12/05/2012 8:27:55 PM PST by Rembrandt (Part of the 51% who pay Federal taxes)
[ Post Reply | Private Reply | To 1 | View Replies]

To: meatloaf

Obozo will stop this through the EPA and Executive Order.

Game, Set, Match... Muslim bruddahood.


7 posted on 12/05/2012 8:29:16 PM PST by acapesket
[ Post Reply | Private Reply | To 2 | View Replies]

To: buwaya

“The big implication isn’t that the US will be producing more, but that there are far larger recoverable reserves and production opportunities around the world.”

The map I saw of potential reserves showed Australia as a major player - good for Crocodile Dundee and the good guys!


8 posted on 12/05/2012 8:32:28 PM PST by Rembrandt (Part of the 51% who pay Federal taxes)
[ Post Reply | Private Reply | To 3 | View Replies]

To: blam

The key is to keep Obama and his Communists from Nationalizing the Oil Industry. Point of reference: Obama’care.’


9 posted on 12/05/2012 8:36:27 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rembrandt
"The map I saw of potential reserves showed Australia as a major player - good for Crocodile Dundee and the good guys!"

Here are some of the worlds reserves, maps.


10 posted on 12/05/2012 8:38:54 PM PST by blam
[ Post Reply | Private Reply | To 8 | View Replies]

To: blam; Ernest_at_the_Beach; Grampa Dave; tubebender; dixiechick2000; NormsRevenge; BOBTHENAILER
Oh no they ain't!!!

Hollyweird's already crankin up the propoganda machinery with a new ready to realease show called "Promised Land." I just seen the trailer tonight and It showed a poor dumb farmer whose whole frickin farm and everything growin on it turnin brown all of a sudden!!! (because of "frackin")

What happened to your other thread about the end of the whirled in less than a month???

11 posted on 12/05/2012 8:43:24 PM PST by SierraWasp (Blessed are they who prospect, dig & drill, for they are the primary producers of new, real wealth!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graewoulf

Muslims are still gonna control oil production.


12 posted on 12/05/2012 8:51:51 PM PST by taterjay
[ Post Reply | Private Reply | To 9 | View Replies]

To: taterjay

Just so it isn’t the Democrat’s Muslim.


13 posted on 12/05/2012 8:54:09 PM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
[ Post Reply | Private Reply | To 12 | View Replies]

To: Rembrandt

He’s in a win-win siruation if he doesn’t blow it. Production will go up, but he can make a show of slowing it, making it safer, cleaner and so please the Greenies. Lower energy costs is bound to buoy the economy, so oil may save Obama from himself and enable him show modest gains and maybe wins one or more houses in 2014. Caution: the East Texas field flooded the oil marke tin 1931-35, but use was too low to put much air in the industrial balloon.


14 posted on 12/05/2012 9:14:33 PM PST by RobbyS (Christus rex.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Rembrandt

He’s in a win-win siruation if he doesn’t blow it. Production will go up, but he can make a show of slowing it, making it safer, cleaner and so please the Greenies. Lower energy costs is bound to buoy the economy, so oil may save Obama from himself and enable him show modest gains and maybe wins one or more houses in 2014. Caution: the East Texas field flooded the oil marke tin 1931-35, but use was too low to put much air in the industrial balloon.


15 posted on 12/05/2012 9:14:43 PM PST by RobbyS (Christus rex.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: blam

Wouldn’t it be lovely to let the middle east sink back into the 14th century and let the Western world get on with civilization without constantly being dragged down to their level?


16 posted on 12/05/2012 9:21:32 PM PST by marsh2
[ Post Reply | Private Reply | To 1 | View Replies]

To: marsh2

“The Shale Oil Revolution Is Real, And It Will Have A Massive Impact On The Global Economy”....

Until Odumbo shuts them down with another “Executive Order”.


17 posted on 12/06/2012 4:41:22 AM PST by DaveA37
[ Post Reply | Private Reply | To 16 | View Replies]

To: blam
Here are some of the worlds reserves, maps.

The US map at that web site indicates there are no oil reserves associated with shale in Texas or North Dakota, the locations of our largest production of oil from shale deposits so far.

It appears it is only focused on shale that contains kerogen and not oil released from shale. And the oil released from shale is the source of this increase in production.

18 posted on 12/06/2012 5:09:04 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 10 | View Replies]

To: marsh2

You seem to have forgotten the East.

Which is currently beating the stuffings out of us.


19 posted on 12/06/2012 5:42:06 AM PST by Cringing Negativism Network
[ Post Reply | Private Reply | To 16 | View Replies]

To: blam
Happy Days Are Here Again?

Not if the Obama regime can prevent it!

20 posted on 12/06/2012 7:47:14 AM PST by JimRed (Excise the cancer before it kills us; feed &water the Tree of Liberty! TERM LIMITS, NOW & FOREVER!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SierraWasp

You are so right! This admin is fighting tooth and nail to be LAST in energy, when we have the opportunity to replace the Saudis as the world’s energy super power.

Makes ya’ wanna cuss, doesn’t it? Strongly cuss...


21 posted on 12/08/2012 12:11:15 AM PST by dixiechick2000 (Don't go around saying the world owes you a living. The world owes you nothing. It was here first.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: dixiechick2000

No muss, no fuss, just a good ol vulgar and vile CUSS!!!


22 posted on 12/08/2012 3:47:02 PM PST by SierraWasp (Blessed are they who prospect, dig & drill, for they are the primary producers of new, real wealth!!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: meatloaf

Actually, the Russians apparently have oil & gas shale potential that makes US resources look modest, but while that may make them self-sufficient it may not provide the type of income needed to arrest the decline of their military.


23 posted on 12/09/2012 4:38:51 AM PST by MSF BU (n)
[ Post Reply | Private Reply | To 2 | View Replies]

To: MSF BU

I wonder how much Russia’s oil and gas sales contribute to their economy. I’ve read that Iran needs oil around $80/bbl to fund their programs. In future years, it looks like unless it’s convenient we won’t be importing anywhere near the 12%, IIRC, of the world’s production like we do now.

There really won’t be a drop in demand. There will be an oil surplus. Russia will see their earnings drop along with all oil exporters.


24 posted on 12/09/2012 10:00:28 AM PST by meatloaf (Support Senate S 1863 & House Bill 1380 to eliminate oil slavery.)
[ Post Reply | Private Reply | To 23 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson