Gulf Countries Won’t Be Fracking Off Anytime Soon
“Despite the shale revolution [in the U.S.], the Middle East is and will remain the heart of global oil industry for some time to come,” International Energy Agency chief economist Faith Birol told the Financial Times. Birol’s remarks came after the IEA released estimates about oil production for the last three months.
Data from that period suggest that the Gulf states of Saudi Arabia, the United Arab Emirates, and Kuwait will set records for aggregate oil production. Combined, the three countries in September contributed 18 percent to oil’s global demand, a level not seen since 1980.
For their part, oil producers in the U.S. have hardly slacked off in terms of output. Earlier this month, the International Business Times reported that the U.S. was poised to overtake Russia as the second largest producer of oil, thanks mainly to hydraulic fracturing, commonly referred to as “fracking.” Al Arabia also made note of this in its coverage of the IEA report, pointing out the 50 percent increase in production the U.S. has experienced since 2008.