More from Doug Sweeney

America's dependence on Middle East oil could disappear by 2035

By Doug Sweeney,  June 27, 2012, 11:22:44 AM EDT

Energy independence has been a goal of the United States ever since the Nixon Administration and if recent projections are to be believed, that goal may be on the horizon.

The Wall Street Journal reports that the U.S. could completely wean itself off fuel from the Middle East by 2035. In addition, reliance on Middle Eastern oil could be cut in half by as soon as 2020.

The primary reason behind this decline is increased production of oil and gas in the Western Hemisphere, which has been made possible by the technological advances, such as hydraulic fracturing, better known as fracking.

Fracking involves millions of gallons of water laced with sand and chemicals pumped into shale rock thousands of feet below ground. This mixture literally cracks the the rock, releasing shale gas, which is then captured. This process has allowed the U.S. to become the world's leading producer of natural gas , even though Russia has reserves of the hydrocarbon six times the size of America's.

In addition to technological advances, declining demand of oil is expected to lessen America's dependence on Middle Eastern oil. This will reportedly be accomplished through more efficient car engines and increased use of renewable energies, such as solar and wind power, reports the Journal.

"Whereas at one point there were real and serious concerns about the ability to maintain sustainable access of supplies to the United States if there were disruptions in the Middle East, that has changed," Carlos Pascual, the leading energy official with the State Department, told the news provider.

Specifically, the U.S. Energy Information Administration anticipates that by the end of the decade half of America's need for crude oil will be filled by domestic sources. Further, the Organization of Petroleum Exporting Countries says that by 2035 shipments of oil from the Middle East to North America  "could almost be nonexistent."

One thing that could get in the way of these predictions is public sentiment turning against the fracking industry. There is already a large amount of opposition to the practice - particularly in the Northeast - due to fears that the natural gas extraction process could contaminate groundwater and cause earthquakes.

While it has yet to be proven that this former fear could come to pass, a recent report from the National Research Council did link fracking to two earthquakes. However, these seismic incidents, which occurred in Oklahoma and England, were both very minor.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: News Headlines, Business, Commodities, International

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