There was a time when the automobile was a symbol of freedom to care for a days when a full tank of gas could be had for patients but then pain the First Oil Crisis when the price of crude oil. Black gold for Oil Producing countries it became a political weapon and a potent tuneful blackmail and threats. To. Our dependence on oil cost us dealing the day when the worlds oil reserves will run dry and now appears within science that this was just the start. The oil crisis did not foresee the events that opened the door to the exploitation of a new resource shale oil and unprecedented boom propelled the United States into the ranks of the Worlds Largest oil producers. Consumers benefited from cheaper prices this time it was the Oil Producing countries that bore the brunt of the price of oil collapsed between june twenty fourth chain and january twenty sixth in the price of a barrel of crude declined by seventy percent. It is destroying major producers the United States russia and saudi arabia continue to five for power and control shifting strategies and alliances helped turn the Global Economic and geopolitical order on its head. At the same time a global transition to Renewable Energy is underway oil is still king but is its room now drawing to a close. Here in the heart of paris the kepler Company Keeps a sharp pile on the global oil economy. By so you know. Alexandra and lawyer is an oil market analyst. To release numbers showing saudi arabias exports are rising a bit and venezuela is still forming. About one hundred thousand barrels a month so id say thats having an end. Act right now. In september twenty twelve early in his career and lawyer published a study that predicted a major drop in the price of oil many experts disagreed. On their new solution put in twenty twelve the price of oil was one hundred dollars a barrel to their own thoughts he could only go up to two hundred dollars a barrel is on when i said all the prices would collapse they thought i was crazy and yet he could be taller and he should jump twenty fourth. In january twenty fourth chain until his predictions began making headlines. When facing a technological revolution that could change the world as we know it today. Black gold a recurring theme in the modern American Dream the countrys oil taps seemed endless and oil exports billions to. The Industrial Revolution helped make the United States a world power but to maintain a standing new sources of oil would need to be found. A row of saudi arabia. In february nine hundred forty five the americans and the saudis meet on board the u. S. S. Quincy to discuss oil. Have you a doctor security miter a sickle socrates or there was a bilateral security pact which is what the saudis called. Dogs who lay said to the americans loserville we have an ocean of oil and will assure that you have a secure supply. Why news of it in return we ask you to ensure our security. Security. Wasnt done for so as it alone my understanding each other problem brings east and west together far better. The friendship would soon proved to be a rocky one in nine hundred sixty the oil exports of the middle east joined with venezuela to form a cartel that would defend their interests and stabilize prices. From that point on the organization of Petroleum Exporting countries opec would be a powerful force. Look up i mean its office on. Some longer madeleine israel i. Think be. Worried about its own oil supply the United States hopes that its exports. The carefree years when a tank of fuel costs next to nothing had ended well have become a political weapon. In the. Us over this one of the ninetys weve forgotten that oil crisis people were euphoric. They thought everything would be fine that we had the geopolitical situation under control and that we would retain a firm grip on the middle east with these about them it later we realized that wasnt the case but at the time thats what people believed book received. The terror attack. On september eleventh two thousand and one was a profound shock to the u. S. Government and its people. Fifteen of the nineteen hijackers were saudi nationals. It all said after september eleventh we saw the close relationship between saudi arabia and the United States began to disintegrate somewhat. But the u. S. Was very dependent on oil imports from the middle east including saudi arabia. We began to see American Companies such as exxon mobil chevron and texaco shift from saudi arabia to africa which at the time was still relatively untapped. They focused on angola nigeria and the other countries along the gulf of guinea must. Not only. In the wake of nine eleven the u. S. Began to pursue a new oil supply strategy africa was just the beginning was. Saddam hussein and his sons must leave iraq within forty eight hours iraq held nearly ten percent of the worlds oil reserves the u. S. Had taken another step in the direction of reducing its dependence on saudi oil in any conflict your fate will depend on your actions. Do not destroy a wells a source of wealth that belongs to the iraqi people the americans would prove to have a keen interest in iraqs oil fields the weapons of mass destruction supposedly possessed by Saddam Hussein were little but a pretext in two thousand and three oil costs thirty dollars a barrel. The wounds of wall street got into the act the big american banks had the scent of black gold which had become an attractive commodity on the global market. In my personal trading experience is in the oil but at Morgan Stanley at the time on my Trading Floor we traded all commodities so it included agriculture metals freight shipping natural gas power all commodities. And then tire commodities market was booming and demand was fantastic for Oil Worldwide in china and particular and asia were growing a lot so very very positive didnt make a lot of money yet a lot of money was made and because we had new Market Players and so then that creates more opportunity. Over the next three years the price of oil more than doubled to consider to do this development of this banking business originated with American Investment banks we need to ask are these two actually banks or are they perhaps Financial Institutions that engage in trading. The kids into Goldman Sachs and Morgan Stanley became Major Players. There were years when Goldman Sachs and over a billion dollars from a commodities trading bubble. The commodities. Financiers. The banks the speculators realized that oil especially crude oil was a fungible good. Kind of substitute for money if you will. The most fungible good is money which is traded around the world next come crude Oil Petroleum gasoline. Its also bought and sold all over the world the banks used oil as a way to engage in speculation. The speaker of. The financial industry had free rein they traded in future is legally binding contracts without ever seeing so much as a drop of oil. In the oil price is directly related to speculation it has nothing to do with the actual product anymore because its when the time when the crude oil is extracted and when it arrives at the refinery its price will have tripled. About thirty intermediaries will have all taken their cut its completely crazy for me as a poor industrialist this is the key point fortunes have been made without any product behind it simply by means of trading souls of poetry is some promoted typically. The rise in oil prices was not only due to speculation Global Demand from emerging and threshold countries and from china was also a driving force. It was very exciting because it was a new world and asia was developing so much that was. Just very exciting that the entire world was growing it was wonderful. In two thousand and eight the price of oil hitting a new record. When the oil price even went above one hundred dollars it was crazy hey it was so exciting as you know it when up and then it went straight down again and then it went higher again. So it was very exciting but still we had buyers so so long as someone wants to buy the oil its ok. Meanwhile American Engineers and entrepreneurs were hatching a new plan to exploit the immense oil and gas reserves in shale and other rock formations while conventional oil deposits are for the most part easily accessible shale oil is trying to grok so dense that it must be fraction to extract it the process is expensive but at a price of over one hundred dollars a barrel it becomes profitable. The start of shale extraction extraction from unconventional reserves in the u. S. Sensed an opportunity. Lift is unique you merely years explain you as was an oil exporter and the later they became an importer and signed agreements with the gulf countries some of us with here but now they thought maybe we could escape the clutches of those bothersome countries in the middle east to suit the more you know your dog will build. The Permian Basin in the heart of texas contains an immense oil reserve estimated at some thirty five billion barrels the first oil rigs went up here in the early one nine hundred twenty s. In the city of midland the childhood home of george w. Bush oil is king. The development of the technology for crack and in the bill is a get it out that the Permian Basin was fabia ready if for any other reasons our city Eagle Ford Shale that was in the is not a new bit bizarre element and barnett shale but the shale play here you have so many advance individuals i hear and as for geologists and engineering groups they were already there could well rate if not a lot of play right here we have in some areas over twenty different pace that are stacked on top of one another this resource here is enormous he sank of the size of the Permian Basin its its bigger than the state of alabama thats how big it is. And xander came in twenty fourteen the Shale Oil Revolution was at its peak and. You can. Use it. To that everybody was in full swing. During the first half of the united for prices and one hundred dollars a barrel drilling rigs were everywhere. Everyone was euphoric there was a real estate boom years it was a true oil rush but that was structurally speaking shale Oil Extraction is a completely new and Different Industries look at all this with just five Million Dollars you can start extracting oil within three to six months and more reserves elsewhere in the world it takes several hundred Million Dollars and a much longer time between two and four years was that it was very surprising how quickly things went teeth and how little money was needed that this up for all. This shale oil windfall allowed the americans to come school imports as a result of Global Demand stone. There was a glass on the market for one hundred Million Barrels of oil with no buyout. Accidents at those it will show that one fourteen oil crisis wasnt triggered by the americans it was triggered by the saudis it had a political dimension the u. S. Had long been an ally of the saudi monarchy. She said yeah and. They had an understanding with the saudis that they would turn the tap on and off in order to regulate market forces. But the saudis had no plans to throttle production instead they continued flooding the market hoping to push prices down at under seventy dollars a barrel and they assumed the american fracking industry would fall to the boil went into free fall. Made all of. The high stakes game of poker began in the first round saudi arabia urged its opec partners the all powerful cartel of Oil Producing countries to maintain their production though oil prices were crucial to their strategies. No school issued you know she did in the summer of two thousand and fourteen the saudis decided to send oil prices plummeting to use high costs to push wreckers and other producers out of the market. We were surprised and start maybe they know the shale industry is on or about it. She stop the ticket is all really hard. After a five hour negotiation opec conceded the saudi position they agree to flood the market and drown out the american produces Oil Prices Continue to fall in. Russia the worlds second Largest Oil Exporter stood back and watched. The country is not a member of opec and it had a somewhat different take on the american shall revolution. Yarmulkes goes for the technology that permitted the development of shale oil and gas extraction was developed in the schlumberger bar a tree located in the city of najaf a c. B. S. Company. That are in the development of this technology took place on russian territory but border if you combine into his head you know we didnt think fracking would be implemented on such a large scale ship that. Intense eunice but it didnt surprise us because the United States and canada have significant hydrocarbon reza. So certain other was a. Q. Unlike the United States russia doesnt extract its shale oil but even though russia was not surprised by the us fracking revolution moscow did not anticipate the collapse of oil prices. Richard issued a new trip to the store in twenty fourteen small the russian officials and the oil and gas analysts believe the prices would not fall below eighty dollars a barrel. With two thousand years ago we didnt think the saudis would risk that since it would make it difficult to maintain a balanced budget the more looks a bit was all it sold of even the russian president said that the World Economy would collapse if prices dipped below the eighty dollar mark foursomes dollar for the work. But the price kept dropping. As the Holiday Season approached moscow grew worried that the plummeting price of oil could send the country into a deep recession. The downward plunge continued. I. The Major Players in the u. S. Fracking industry working on a strategy to come up the saudi gamble with no end in sight to the drop in prices who would fall into first. Level your last shock that all the shock of the saudi decision unleashed a shock wave i commend it had an almost Immediate Impact on the shale industry difficult to understand there were massive layoffs in the United States. Everyone cut losses cool the price you rock bottom at twenty six dollars a barrel. When it. Happened so theyre all set up for twenty six dollars was in a serious crisis just some major factors continue to ring in the rebound that was coming at us this notion of Financial Resources to withstand the lower prices which they figured would last only a few more weeks or months is a dog and they were right as he also said that. I dont think anybody was actually and again during the time actually you know working ourselves back up and everybody was still watching the price of the all you know met watch in a pretty close and i forget what the exact price was. Her. How. Every Oil Producing country was affected by the crisis but norway had an advantage. Western europes Largest Oil Producer was observing the poker game from a safe distance and preparing to the future. No doubt them are already stored intact for many years much of norways revenue came from oil and gas exports to countries in the region. Then before the crisis hit our government had already decided to diversify the norwegian economy. We needed a broader basis which would make us stronger at concentrating all our growth in one Single Source of revenue would make us too vulnerable what it would if its not in. The plummeting price of oil also had an impact on public perception. Of their saw. Rock fall in a certain sense it had a positive effect at least here in norway although tim on the bill that helped us move forward in the discussion about Climate Change scope and the Oil Companies grow a bit more open to alternative solutions ill get a similar. Or a more and more citizens our politicians realized that perhaps we shouldnt believe what the Oil Companies were say every resource is finite even if they try to launch all these crazy projects like this. That helped trigger a shift a story. So the scope of the nearly. Oil extraction began in norway in one thousand nine hundred seventy one and ninety ninety the country established an oil fund to invest its Petroleum Revenues this software and wealth fund which has more than one trillion dollars in assets helps finance social expenditures in nov twenty seventeen the fund announced it was considering to vesting from or oil and gas saying the country already had enough exposure to this high risk industry but so far no decisions being made. To see it out when our time in the demand has peaked oil want i