oil price heading lower due to u.s. shale gas

Many hotcopperites follow AZZ, AUT, ADI which are excellent Aussie companies drilling for shale gas in the USA. Many do not realize that U.S. technology has made drilling for shale gas cheap and that the U.S. is now finding massive quantities of the stuff. So much that it is now dropping the price of oil. This is an energy revolution in the making.

Some say that the U.S. will be able to switch to shale gas at about 1/3 the price of imported oil for multiple energy applications. U.S. companies will now take this drilling technology worldwide and start drilling across the globe. A new drilling program is getting underway in Poland in a few weeks on large shale deposits. IF large discoveries are made it will revolutionize relationships between the East and West.

U.S. discoveries are already having an impact on world markets as it is starting to lessen demand for U.S. imports where LNG terminals stand empty and supplies destined for that market head elsewhere. That is why oil is now heading lower as it crushed thru the 200 DMA last week. It has tested support at $75 three times in the last six months and a break here will send it back to $70. The days of peak oil may be doomed.