Saudi Arabia

How Fracking Changed the Economics of Oil Production Around the World

James Meadway, chief economist at the New Economics Foundation, explains the interrelated economics behind China’s 'Black Monday' stock market crash, Middle Eastern oil and US fracking.

The 'fracking revolution' has transformed the economics of oil production globally, with the US becoming a bigger producer than Saudi Arabia and – after decades of dependency on oil imports – even being able to export some of its surplus production.

US shale oil is unusual, too, in being privately owned: most of the world’s oil reserves (over 70 percent) are in state hands. Like the North Sea 30 years ago, in a world dominated by state-owned companies and publicly owned reserves, US shale could look like a new frontier for private operators on the search for fat profits.

Exporting Canada's Oil Means Exporting Canada's Jobs: Why the Enbridge Pipeline Threatens Canadian Economic Security

The arguments in favor of the Enbridge-proposed Northern Gateway Pipeline often stress the economic benefits the pipeline will bring to Canada. Economists and trade organizations emphasize the advantages of increased production in the tar sands for Albertans and the jobs produced during pipeline construction for British Columbians. Another supposed economic bonus is to come from strengthened trade relations with China, the largest foreign investor currently involved in Canada's tar sands.

Yet as the current National Energy Board hearing takes place, a new message is surfacing, and it's not of the 'economic boon' ilk. According to a number of analysts, energy experts and even industry players the pipeline will export more than just Canadian crude: it will also be shipping off Canadian jobs. And that, they say, coupled with China's growing stake in the tar sands, is by no means in Canada's long term economic interest.

Why Ethical Oil's Deceptive 'Women's Rights' Defense of Tar Sands is Insulting and Wrong’s new spokesperson, Kathryn Marshall, authored an insulting piece this week on the Huffington Post titled “Care About Women's Rights? Support Ethical Oil”. Marshall’s piece is a response to the October 11 article by Maryam Adrangi at It’s Getting Hot In Here.  Adrangi argues that the underlying motive of the “ethical oil” campaign is to deflect negative attention from the tar sands, not to actually engage in a conversation about women’s liberation.

If women’s rights were of genuine concern to” writes Adrangi, “then there would be a conversation about the impacts that tar sands extraction has on women”.

You’ll notice that Marshall’s attempted rebuttal fails to actually address the substantive criticisms made in Adrangi’s piece - Marshall never mentions the impacts of Alberta’s tar sands development on women, but instead repeats the same arguments and general hand-waving that sparked Adrangi’s criticism of's conservative pundits in the first place.

Marshall’s promotion of tar sands oil is framed around a central argument that if we care about women’s rights then we must support tar sands expansion, and by extension the Keystone XL pipeline, because Canadian women fare far better than women in petrocracies, such as Saudi Arabia.  But Marshall’s argument doesn’t hold up to scrutiny for three major reasons.

Saudi Arabia and Ethical Oil Group Go Head to Head Over Ads

The controversial Ethical Oil adswhich enjoyed an exclusive run on the Oprah Winfrey Network at the end of August, have earned a new enemy: the Kingdom of Saudi Arabia.

The tar sands industry ad campaign, which criticizes our reliance on oil imports from Saudi Arabia due to its poor human rights record, tells viewers that choosing between women’s rights and tar sands expansion is “a choice we must make”. 

The ads argue instead that intensifying tar sands production will actually help liberate women from oppressive petrocracies like Saudi Arabia. They also imply that we must support the controversial Keystone XL pipeline because it will decrease our reliance on “conflict oil”. 

According to the ads, “We bankrolled a state that doesn’t allow women to drive, doesn't allow them to leave their homes or work without their male guardian’s permission and a state where a woman’s testimony only accounts for half of a man’s”. 

A female voice pleads to the viewer, “Why are we paying their bills and funding their oppression?”

The ad has angered Saudi Arabia, who in response sent a cease and desist letter to Telecaster Services from the Television Bureau of Canada, demanding approval for the ads be withdrawn. 

Open Letter to Oprah Winfrey on 'Ethical Oil' Ads

Dear Oprah,

I just don't know where to begin. 

I can't find my words because I respect you so much. You're a woman pioneer who has done much to advance the status of women globally. You've donated millions of dollars to various organizations, and have used your talk show to raise the profile of women's issues. Your philanthropy has funded projects like The Oprah Winfrey Leadership Academy for Girls in South Africa, and Women for Women International. You've also used your celebrity to raise awareness of environmental causes, notably the efforts to rebuild the Gulf. 

That's why I'm so stumped right now by your choice to feature ads from on your television network. 

I'm all about the work that you do, but the logic of promoting tar sands oil by appealing to our desire for women's liberation, our desire to help protect women in despotic regimes like Saudi Arabia, is deeply flawed and misguided. 

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