From BI: We are seeing calls that, thanks to shale drilling, the U.S.
is poised to become the world leader in oil production, leading some to begin
invoking "Saudi America." Today, Goldman Sachs analyst Kamakshya
Trivedi, weighed in on the global macro implications of this phenomenon in a
note titled: The shale revolution is changing the global energy landscape.
The note actually goes further, talking about how the entire
economic landscape could potentially change.
The main impact, they write, is that oil prices will no
longer prove a brake on growth:
...shifts in production are gradually loosening the oil
price constraint that has been a persistent feature of the global economy. If
global demand growth can recover, the risks that it will be choked off by
rising oil prices are receding.
This will produce a knock-on effect for household incomes in
the West, while blindsiding petro-states…
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