Don't tell OPEC that U.S. production will change the way it will do business. OPEC isn't buying one bit of it. In a recent statement, Iraqi oil minister Abdul Kareem al-Luaibi said OPEC had no intentions of changing its output ceiling of 30 million barrels per day as long as it can maintain a price point for oil of about $100 per barrel.
While OPEC producers argue now that U.S. production won't have a profound effect on global markets, the question is, how long can that position last? The Bakken and the Eagle Ford formations in the U.S. have both increased production by at least 200,000 barrels per day over the past two years, and new finds in the Gulf of Mexico could bring offshore production back to its former glory. In this video, Fool.com contributor Tyler Crowe looks at what we need to do to help facilitate this spike in produciton and why OPEC should start to pay attention.
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