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Breakingviews: Fracking foreign policy

Wednesday, August 28, 2013 - 03:27

Aug. 28 - Rob Cox and Christopher Swann discuss how hydraulic fracturing in America may alter the country’s approach to the Middle East.

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So is fracking actually altering American foreign policy. In ways that we're just now seeing what in the Middle East. This is the question we you and I are trying to discover today. We've gone through and looked at what's happened with fracking which is hydraulic fracturing. Allowed you to use -- pressure to get lots of oil and gas out of the ground it's completely changed the game for American energy independence and where we gonna go this thing. Well I think every president since that Nixon has promised that America can become. Independent of Middle Eastern oil. Obviously nobody likes the idea that we have to kowtow. To the likes of Saudi Arabia -- That's been a problem for US -- policies that decades and decades but finally we have a confluence thanks so fracturing hydraulic fracturing has allowed us to. Get cheaper oil and gas out of the ground ways that we didn't think we could ten years ago. At the same time we've had a a bit of recession of course her lower growth. And -- had actually increased efficiency yeah what does that all mean I mean what is happening there even that's enough that many 2000 night pretty pretty easy just the past five years we've seen negative polls stay down. By about 40%. After the United States and particularly from OPEC can and nobody particularly likes the APEC. Countries all right lots of that Middle Eastern country falls right Venezuela not not no great friend of the United States. -- that we've had to import a lot less oil from all of -- people and -- strengthens America's and sorry to say but it's colleague you the United States and disappearance and ignores the that you Middle East that's that's China's problems as they get all their money they're getting all their oil out of there or. The same time courses and impact on the global technical oil price however as you point out the peace. It's becoming less of a problem. Well with the production increase from the United States been about 2.2 million barrels today 60008 at America's added to its two global supply of global supply. And that means that we can have a fuel crises in the Middle East so it's like a -- we've ever yes exactly it's about a without it actually causing a huge spike weasel any evidence that we have we seen the evidence from Libya in 2011. Obviously -- was on his way out. And oil production plunged from the country that was an increase in the oil price. But it wasn't catastrophic drier so all that taken together it sort of -- if you think about it the United States. Can sort of have a little bit more latitude than. In looking at affairs and -- whether it's this Syrian civil war or whatever you might call happening each episode the beginning of the civil war. In a sense not even though those -- not oil producers mean Egypt of course controls Suez Canal but you have an opportunity if you will for the US to start to. Look at humanitarian interest like -- one we almost certainly you're gonna be involved in Syria. Relative to economic interest which you've always been so modeled after -- -- that America was awake interested in these places like Egypt. Was partly because they had a spillover effect into the big oil projects this whole area is very. Pat Meehan told that a political crisis in one area cannot move into and out there and but now if America is becoming much school. Freed from -- that reliance. It it has a lot more last achieved tat -- a policy -- all the policy consensus in the long treatment right but it's only been a few years it's we've seen that so it's giving it's not. Not obvious yet -- at the start to be at this -- bell -- America production racy if that's okay. Fasten your idea will be back for more breaking news tomorrow.

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Breakingviews: Fracking foreign policy

Wednesday, August 28, 2013 - 03:27