I hadn’t thought of this, but after rushing through the energy bill (and the requisite constitutional changes … including ratification by two-thirds of the state legislatures in a record 84 hours). it’s becoming clear that there isn’t any crying need for more North American oil …
An influx of Mexican oil would contribute to a glut that is expected to lower the price of Brent crude, the benchmark for more than half the world’s crude that has averaged $108.62 a barrel this year, to as low as $88 a barrel in 2017, based on estimates from analysts in a Bloomberg survey. Five of the seven analysts who provided 2017 forecasts said prices would be lower than this year.
The revolution in shale drilling that boosted U.S. oil output to a 25-year high this month will allow North America to join the ranks of the world’s crude-exporting continents by 2040, Exxon said in its annual global energy forecast on Dec. 12. Europe and the Asia-Pacific region will be the sole crude import markets by that date, the Irving, Texas-based energy producer said.
As with gold in the 16th century which benefited neither the native people nor, in the long run, the Spaniards, the “discovery” of all this “new” oil is not going to make the exploiters rich, but rather all of us poorer.