And it's an even bigger threat to nations that use oil pricing as a weapon, such as Venezuela and Iran. Both use state oil earnings as cash cows for socialist handouts at the expense of investment, maintenance and upgrades — and their profoundly hostile attitude to markets is premised on their dependence on high oil prices — above $90 a barrel — to maintain their grip on power.
Venezuelan exports to the U.S. have fallen 11% in the first two months of 2013 compared to 2012, while overall exports have fallen as more resources are diverted to domestic use as the nation's oil facilities fall apart due to non-maintenance. They can expect nothing but chaos ahead as the fracking revolution goes on.
Not a single one of these oil cartel members, nor any country with a state-owned oil company, faces a bright future as U.S. fracking goes on.
What all this shows is that the private sector, operating in a free society, sensitive to consumer demand and innovating a solution, is an even more powerful engine for upending a corrupt global monopoly status quo than even U.S. military might. All signs show that fracking is ending the power of these cartel states.
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