OPEC is Losing Power
The 1973 oil embargo has resulted in the U.S. increasing its oil production by 50% over the past 40 years. Since 1973, oil consumption in the U.S. has cumulatively increased by < 7%. Virtually all oil consumption growth is from emerging markets. China is the world’s largest net importer of oil. In 2013, total world oil production was 50% > it was in 1973.
Since 2008, U.S. oil output has increased by > 50%. By 2025, automakers must produce cars that average 54.5 miles per gallon. Oil imports represented 60% of U.S. domestic oil consumption in 2005; by 2013, the figure was 35%, the same level it was in 1973.