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Carl Pope

The American Myth of Cheap Oil and Gas

In recent years, U.S. business and political leaders have giddily talked of a “Saudi America” gurgling with domestic oil and gas. It’s true that the U.S. now has access to abundant supplies of cheap domestic gas capable of transforming the U.S. economy. Too bad these same leaders are about to give away a vast chunk of North America’s hydrocarbon production -- and all the strategic advantages that go with it.

We’re already seeing the effects. On July 19, U.S. drivers lost their price edge as West Texas Intermediate oil soared to $109 a barrel, almost equaling the cost of Brent crude in Europe, which only months before had sold at a $20 premium.