December 4, 2013

U.S. Frackers, Iran's Oil Men Threaten Energy Cartel

Jamila Trindle, Foreign Policy

The Associated Press

Iran's potential rehabilitation comes at an awkward time for OPEC, the elite club of petroleum-producing states that controls the flow of oil to the world market. The cartel's dominance is already threatened by a boom in oil extracted from shale in the United States, and now the potential return of millions of barrels of Iranian oil to the market looms over Saudi Arabia and other OPEC countries as they meet in Vienna this week. While the global power shift brought on by the U.S. shale boom threatens OPEC from the outside, member countries are threatening it from the inside. Iraq, and now Iran, both want to increase production at a time when global supply is already high, raising the specter that OPEC won't be able to marshal its members into line to control prices. The end result...

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TAGGED: Iran, Ali Khamenei, Fracking, Oil, OPEC, Middle East

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