Re:U.S. oil production to be equal to Russia plus Saudi Arab...
by philwelch on Friday December 21, 2018 @07:28PM
(#18738009)
Production and consumption are different levers.
Yes, it would reduce the geopolitical power of KSA and Russia to reduce oil consumption. Reducing the global demand for oil will, in isolation, lower the price and undermine these autocratic regimes.
However, reducing the global demand for oil while simultaneously increasing the supply for oil from the free world will not only lower the price even more, it will also make it easier for the free world to achieve resource independence from autocratic oil states.
Yes, it would reduce the geopolitical power of KSA and Russia to reduce oil consumption. Reducing the global demand for oil will, in isolation, lower the price and undermine these autocratic regimes.
However, reducing the global demand for oil while simultaneously increasing the supply for oil from the free world will not only lower the price even more, it will also make it easier for the free world to achieve resource independence from autocratic oil states.