OPEC loses some muscle

Chicago Tribune: Global crude oil prices have been falling in recent weeks, bringing relief to motorists at the pump — and angst to members of OPEC.

The oil cartel still controls most of the world’s oil reserves. But it lacks the market power it once wielded. The days are over when an Arab oil embargo could cripple the U.S. economy, as happened during the mid-1970s. An era of abundance has dawned, thanks largely to North American shale-oil producers.

Some analysts expect a global surplus of oil in coming years, as well as a boom in the production of natural gas. Given robust supplies, oil prices are likely to stay relatively low. Those lower prices are just what the economy needs to stimulate job creation, business investment and an overdue rise in middle-class living standards. As a result, President Barack Obama should be doing more to boost the U.S. petroleum sector. His administration puts great effort and taxpayer funding into so-called green energy, but many Obama-backed subsidies for wind, solar and other renewables haven’t paid off.