IMPLICATIONS OF UNCONVENTIONAL OIL ON THE ECONOMIES OF CONVENTIONAL OIL-PRODUCING COUNTRIES

Abstract

This paper focuses on unconventional oil sources such as shale oil and oil sands as well as a statement of the high growth of production from these sources, whether it is at the present time (2020) or in the future, as a result of technological development that contributed significantly to overcoming the difficulties that were an obstacle to Exploiting these sources. In addition, it made it more economical than before, as a result of lower production costs. The production of a barrel of oil from unconventional sources in some countries has reached between (20-25) dollars. This has led to the creation of repercussions as a result of this development in production from non-conventional sources on countries that depend on the management of their economies on the revenues of conventional oil at the present time (2020) and the future and that appear directly in the oil sector and the resulting revenues. Indeed, it can be said that there are transformations in the global oil markets that started to appear some time ago as a result of the high rates of unconventional production from energy sources, which caused competition with conventional resources for their shares in the energy markets. Moreover, these resources are concentrated from unconventional oil sources in countries outside OPEC and in very large quantities, such as the North American continent as well as other countries, but with lower proportions, which led to a lower rate of these countries' oil imports and higher rates of exports. On the other hand, the exports of the countries producing conventional oil to those countries decreased, which resulted in a decrease in their oil revenues, as well as a decrease in the average price due to the high rates of oil supply in the global energy markets.