based on the essay, "The Organization of the Petroleum Exporting Countries, or OPEC, has historically had a big impact on the oil sector. OPEC was established in 1960 and comprises 13 member nations, most of which are in the Middle East. Together, these nations control a significant amount of the world's oil reserves.
OPEC's ability to coordinate production levels among its member countries is indicative of its influence in the oil industry. By controlling prices through its dominance in the oil market, OPEC gained a great deal of power in the 1970s. A global oil crisis resulted from OPEC's ability to drive oil prices to all-time highs through a series of embargoes and supply disruptions. These moves illustrated OPEC's capacity to control the oil price and have an impact on the world economy. Being a significant oil-producing region, the Middle East has been heavily impacted by the oil business. These economies now rely heavily on oil, which contributes significantly to their GDP and government income. Many Middle Eastern nations have experienced rapid development and expansion due to the wealth created by oil, but this has also resulted in political and economic reliance on the resource. Furthermore, the Middle East's enormous oil reserves have drawn interest and participation from all around the world. Power struggles within the region as well as external interventions and geopolitical conflicts have resulted from this. Conflicts and tensions within the region over the distribution and control of oil resources have been exacerbated by the Middle East's strategic significance in the oil industry. Production quotas are one of OPEC's tools for managing oil prices among its members. OPEC seeks to balance supply and demand in order to maintain target price levels by collectively raising or lowering production levels. With this strategy, OPEC is able to significantly impact the price of oil around the world. However, because of things like non-OPEC production, changes in global energy sources, and technological advancements, the effectiveness of OPEC's control has fluctuated over time.
Numerous factors have caused notable fluctuations in oil prices and production in recent years. The rise in shale oil production in the United States has significantly increased oil production. As a result of its rise to prominence as a global oil producer, the US is less dependent on imports from the Middle East and other areas. As a result, there is now too much oil on the world market, which is driving down prices. The Organization of the Petroleum Exporting Countries (OPEC) and other significant oil-producing nations, such as Russia, reduced production in an attempt to stabilize prices in reaction to the price decline. These reductions have somewhat assisted in driving up prices and lowering the excess oil supply on the market. The Middle East and the USA have both experienced different consequences from the volatility of oil prices. The Middle Eastern countries that heavily depend on oil revenue, such as Saudi Arabia, have experienced economic setbacks due to the decline in oil prices. To lessen their reliance on oil, the governments in the area have been forced to enact austerity measures and diversify their economies. Conversely, the US has profited from lower oil prices, which have aided in accelerating economic expansion and lowering consumer energy expenses. However, the US oil industry has also been impacted by the drop in oil prices, which has resulted in job losses and a slowdown in production growth. Overall, the Middle East and the USA have been significantly impacted by the recent changes in oil production and prices, underscoring the interdependence of the world oil market and the significance of stable oil prices for the world economy."
Write a conclusion with your final recommendation:
Should the USA increase fracking to win the “Gas Nations War” against OPEC? Why or why not?
Provide at least 3 reasons justifying your decision. Support each reason with evidence you found.
In conclusion, I do not recommend that the USA increase fracking in order to win the “Gas Nations War” against OPEC. There are several reasons to support this decision.
Firstly, increasing fracking comes with environmental risks and concerns. Fracking, also known as hydraulic fracturing, has been linked to water contamination, seismic activity, and air pollution. According to a report by the Environmental Protection Agency, fracking can impact drinking water resources through spills, leaks, and underground migration of chemicals. In addition, a study published in the journal Science found that fracking can contribute to increased methane emissions, a potent greenhouse gas that contributes to climate change. Therefore, relying on fracking as a strategy to compete with OPEC may have detrimental effects on the environment and public health.
Secondly, the long-term sustainability of fracking is questionable. While fracking has led to a boom in oil and gas production in the United States in recent years, there are concerns about the longevity of these reserves. A report by the International Energy Agency warned that the boom in US oil production driven by fracking may not be sustainable in the long term. As reserves are depleted and production declines, the United States may become increasingly reliant on imports once again, negating any short-term gains from increased fracking.
Lastly, pursuing a strategy of increasing fracking to compete with OPEC may further exacerbate geopolitical tensions in the Middle East and other oil-producing regions. OPEC has historically used its influence in the oil market to maintain stability and control prices. By aggressively ramping up fracking production to challenge OPEC, the United States may provoke OPEC member countries to take actions that could lead to increased geopolitical conflicts and instability in the region.
In conclusion, the United States should focus on diversifying its energy sources, investing in renewable energy technologies, and promoting energy efficiency as sustainable solutions to reduce its dependence on oil and compete in the global energy market. Pursuing a strategy of increased fracking to win the “Gas Nations War” against OPEC is not advisable due to the environmental risks, long-term sustainability concerns, and potential geopolitical consequences associated with fracking.