The oversupply of crude oil – based largely on U.S. shale success – is driving the market’s subdued response to escalating tensions between the Organization of Petroleum Exporting Countries’ top producers, said Jack Gerard, CEO of the American Petroleum Institute.
Speaking with reporters after his "2016 State of American Energy" address in Washington, DC, Gerard said the role of geopolitics around the world has changed during the last decade. Ten years ago, political unrest between Saudi Arabia and Iran would have catalyzed oil price movement, but that’s not the case in the new environment of abundance, he said.
“The global market today is very different. Those who had significant influence over pricing has shifted and is changing. As tensions have heightened in recent days, the market hasn’t responded. It’s very significant what is happening,” he said. “Our ability to compete in the global [energy] market is a game changer.”
A realignment of global energy has poised the United States to remain a “dominant global player,” Gerard said, adding, “The energy policy decisions we make today will determine whether this nation remains a positive and stabilizing force in the world’s energy market and whether consumers can continue to count on reliable, affordable and abundant domestically produced energy for generations.”
The U.S. model for the energy market has created jobs, made the nation a leader in the cutting carbon emissions and provided energy security – all things that would benefit communities around the world, he said.
“We can make the U.S. the energy hub of the world,” he said.
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