U.S. is causing a big impact on Middle East and not in a good way. They are running scared folks!
Increasing US production is impacting Middle Eastern players not only by reducing US import needs. It also changes the global supply-demand balance and its impact on oil prices.
“Increased production and reduced cost originated by shale gas has contributed to the rise of new petrochemical production capacity in the US New feedstock cost advantaged capacities can reduce exports from the Middle East into the Americas. Middle Eastern producers will have to focus more on alternative markets which potentially yield lower profit margins. Tight oil developments and an increased focus on natural gas liquids contributed to a 45% surge in US oil/liquids reserves over the five-year study period.