Patrickov wrote:I actually heard about that shale thing.
So that's why the Saudi Crown Prince is so desperate to try transforming his country into some kind of Monaco. If not, he might face the same fate of some of his ancestors (who lost control of the peninsula from time to time)
May be, may be not. US oil shale production is almost 100% funded by private sector with majority stake being taken over by medium to small sized business. This is kinda the benefit of having not so tightly regulated business environment, wealthy population and distribution being done by fair legal system. Competition and all that.
Such revolution is also possible in many countries of the world oil production wise. The problem is that no other place has the same environment as the US. Europe is the closest but we are very environmentalist. So theoretically we can be the 2nd place but environmentalists will go crazy. Also we are more regulated then the US a bit and we redestribute via regulation instead of a very fair legal system. Its hard to explain. The reason this thing kicked of in the US is because everyone is having a cut: businesses, local communities, workers etc. In Europe we need to fix our regulations and legal code a lot.
If you rate the US by this metric they would get 5 for regulation, 5 for amount of wealth needed and 5 for legal code.
Europe on the other hand is something like 4 for regulation, 5 for amount of wealth needed and 3 for legal code.
Our legal code is fair but it is not designed to redestribute wealth fairly. We do it by other means which is a downside for this case.
Outside of Europe and America it is very unlikely because the traditional narrative for oil extractions is large enterprises or large government run enterprises. But those large enterprises just can't compete against cheap light crude since small/medium sized businesses are doing it that much efficiently. And that is perhaps the whole reason why extraction costs went down so significantly. So companies like BP, ARAMCO, TOTAL, etc will have a hard time soon if this keeps out and also happens in Europe. (Will depend on our willingness to do it and fight the environmentalists)
Outside of Europe or US, may be Australia there is no real place where this can realistically happen without much changes to the local government systems.