But what about the rest of the world?
Quartz’s Steve LeVine was the first write why this could spell big trouble for OPEC.
We also reported last month that Norway’s foreign minister believes that America’s shale boom could rearrange the Middle East’s balance of power as America becomes less reliant on its imports.
But we wanted to go one step further and narrow in one of America’s all-time frenemies: Saudi Arabia.
The kingdom is still rules the oil world in every major stat: production (11.2 billion barrels a day), exports (8.5 billion barrels a day) and largest oil deposit (the Ghawar field at an estimated 70 billion barrels).
But with the help of some charts from AEI’s Mark Perry, whose been chronicling America’s energy boom better than anyone; and the now-instant classic note, “The End Is Nigh [for rising oil demand]” from Citi’s Seth Kleinman and Ed Morse, we bring you 10 charts that should scare the crude out of the Saudis.
Saudi Arabia needs high oil prices to function — Below $80 and the kingdom starts getting into trouble.
But Citi says the following trends will put that in jeopardy...
That's because it's so cheap. Since 2010, natural gas prices have fallen 28 per cent. Rising demand will cause prices to rebound, but it'll be slow going to get off record lows.
According to BP, gas could actually surpass oil sometime after 2030.
Kleinman and Morse also point out stricter standards in China and Japan are coming in 2015.
Kleinman and Morse also capture the effect rising fuel efficiency will have.
It's actually on pace to match and possibly even exceed Saudi liquid fuels production.
What's more, U.S. imports from OPEC -- of which the Saudis are the largest member -- may be down for good.
They now produce about 2.3 million barrels of oil a day, or a third of all U.S. production.
We produced domestically 83.2% of the total energy we consumed.
The EIA predicts our fossil fuel consumption will fall 4 points by 2040, largely at the expense of renewables.