In an amazing feat, if increased US Oil production continues on its current trajectory, we will reduce our imported oil by 50% by 2016-2020 time frame. This will create a tremendous glut of world oil and prices will plummet. The secret is the Texas and Montana oil booms which are increasing at a staggering rate the oil production that america lost over the past decade.

Oil is glutting but the price is UP. They are cheating us yet again with the lie that oil is scarce.

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Prince Alwaleed bin Talal, the billionaire Saudi Arabian investor, has warned that his country’s oil-dependent economy is increasingly vulnerable to competition from the US shale revolution, setting him at odds with his country’s oil ministry and Opec officials.

In an open letter addressed to Ali Naimi, the Saudi oil minister, the prince called on the government to accelerate plans to diversify the economy.

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“Our country is facing continuous threat because of its almost total dependency on oil,” he wrote in the letter, copied to King Abdullah, Prince Alwaleed’s uncle, among others.

The letter, which was accompanied by several others addressed to officials including the finance minister, was posted to Prince Alwaleed’s Twitter account on Sunday. The letters were dated May 13 and a spokesperson for the prince confirmed they were genuine.

The Saudi oil ministry declined to comment on the letter. Saudi Arabia is the world’s largest crude oil exporter, earning $336bn from petroleum exports last year, according to data from Opec, the oil producers’ cartel.

Oil revenues account for 92 per cent of the state budget, according to Prince Alwaleed, and accounted for almost 90 per cent of the country’s export revenues according to Opec.

Opec officials have sought to play down the threat posed to the kingdom from surging North American oil production, which saw US imports from Opec members tumble to a 15-year low last year.

Despite falling US imports, the cartel saw a record windfall of $1.26tn from petroleum exports last year, according to data published by the organisation today. But the International Energy Agency forecasts demand for crude Opec to fall sharply over the next five years
 
us oil production