Wednesday, July 3, 2013
Oil: Egypt - The Alarm Call
The recent oil price rally is an alarm call. It shows that the civilized world is too dependant upon oil supply coming form unruly regions like the Near East. High & rising energy prices are slowing down the already sluggish word economy.
But there is an answer: Fracking. U.S. oil production is rising fast thanks to the new exploration technique. Fracking lessens the U.S. dependency on global oil supply and makes the country more resistant against a geopolitically caused energy shortage.
But there is a lot of political resistance against fracking in the U.S. and even more in Europe. Opponents claim that this technique is endangering the environment. I believe that the risks are manageable thanks to the technological progress. The world needs more oil supply from politically stable regions like the U.S. and Europe. This would curb the economic damages caused by the ongoing speculation on a possible geopolitical oil supply shortage.