Extraction process seen causing oil prices to slide
On May 11, the same day panelists converged at the Atlantic Council to debate the future of hydraulic fracking technology, news broke of a pessimistic report by the Organization of the Petroleum Exporting Countries (OPEC) predicting that oil prices would remain well below $100 per barrel for the next ten years—and that in the best-case scenario, a barrel of crude would cost only $76 in 2025.
Such a scenario has led to much hand-wringing in the US fracking business, the explosive growth of which over the last five years has produced today’s glut on the world oil market. Many say the industry has become a victim of its own success.
The Wall Street Journal quotes Global Energy Center Distinguished Senior Fellow Cynthia Quarterman on the recent oil train derailments in the United States and Canada despite newer and sturdier railroad tanker cars:
US President Barack Obama in January made two widely criticized energy decisions relating to the Arctic National Wildlife Refuge and Outer Continental Shelf oil and gas leasing. Significant hay has been raised about their deleterious effects, especially on Alaska. The president’s actions, however, have silver linings, and perhaps no clouds, but those have been lost so far in the splendiferous aurora borealis.
The Atlantic Council today named Richard Morningstar―diplomat, businessman, lawyer, and scholar―as the founding director of its new Global Energy Center. Morningstar is the latest addition to an expert team the Council is assembling to build its groundbreaking energy initiative, including former Special Envoy and Coordinator for International Energy Affairs David Goldwyn as the chair of the center’s advisory board, and Cynthia Quartermann, who joins the Council as a distinguished senior fellow following her tenure as the administrator of the Pipeline and Hazardous Materials Safety Administration. The Council also recently welcomed Daniel Poneman, the former deputy secretary of energy, and Carlos Pascual, a two-time US ambassador, to its board of directors, rounding out a world-class team of energy experts.