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Feb 4

Written by: Diana West
Tuesday, February 04, 2014 4:02 AM 

Via Andrew Bostom.

On November 25, 2013, Forbes noted:

Over the long run the easing of sanctions against Iran spells trouble for the economics of the tight oil plays that have sprung up across the United States in recent years. The Eagle Ford and Permian Basin and Bakken need sustained high oil prices to make the economics of expensive drilling and steep decline rates pay off. It’s no coincidence that America’s great oil and gas renaissance has coincided with sanctions on Iran and unrest in Libya. The concern for U.S. drillers is that successful Middle Eastern diplomacy could end up being the worst thing for their business. If crude oil benchmarks were to fall to $75 a barrel and stay there for a couple months you’d see drilling rigs across Texas and North Dakota fall silent.

The U.S. onshore oil industry has been perhaps the brightest spot in what passes for America’s economic recovery. How ironic that it could end up being a casualty of the Middle Eastern peace process.

I don't know about "ironic," but devastating for sure -- at least to Americans who yearn for energy independence.

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