Press Release – June 12, 2014
With insurgents having overrun Mosul and now heading toward Baghdad, virtually all of the media focus has been on the military aspects of this conflict as well as a possible alliance between Iraq, Iran, and Syria.
Lost in the shuffle has been the “fear factor” building into the world price for crude oil. This may very well happen to oil prices should the ruling government in Iraq be toppled, or if the conflict turns into a civil war.
Already the price of oil has spiked in the past two days with tensions escalating and may very well drive the price for a barrel of oil oil up another $10 a barrel.
The US has the means to insulate itself against such price spikes: Thanks to the unending supplies of oil and natural gas unlocked by frac’ing, we can free ourselves of our dependence on imports from volatile North Africa and Middle East regions.
These price spikes almost immediately will translate into higher prices for gasoline and diesel at the pump. In an market such as this “Prices shoot up like a rocket and drift back down like a feather”.
Let me know if you are interested in speaking with me.
Bob van der Valk
Bakken Oil Business Journal