Since the early 2010s, the intensive and systematic development of the U.S. shale oil and gas sector has transformed the country from one of the world’s largest energy importers into one of its biggest exporters. Yet this transformation has not only redrawn the global energy trade map—it has also upended the balance of power established after the 1973 oil crisis.

Today, as global demand for natural gas surges amid fears of new conflicts and the explosive growth of artificial intelligence–linked data centers, Middle Eastern nations are seeking to expand gas production—particularly by developing their own shale resources. Both Saudi Arabia and the United Arab Emirates now view the U.S. not as a rival but as a vital source of technological expertise—an alignment Washington is eager to encourage. From a strategic perspective, participating in the energy infrastructure of other nations remains one of the most effective ways to sustain American influence and long-term interests.

Lessons from History: From the “Seven Sisters” to a New Energy Order

Before 1973, the global oil industry was dominated by a handful of Western companies known as the “Seven Sisters”:

* The Anglo-Persian Oil Company (later BP)

* Royal Dutch Shell

* Three descendants of Standard Oil (California, New Jersey, and New York)

* Gulf Oil

* Texaco

These firms controlled exploration, production, transport, and pricing until October 1973, when OPEC—led by Saudi Arabia, alongside Egypt, Syria, and Tunisia—imposed an oil embargo on the U.S., the U.K., Japan, Canada, and the Netherlands in response to their support for Israel during the Yom Kippur War.

By March 1974, when the crisis ended, oil prices had jumped from roughly $3 to about $11 a barrel, triggering a global recession that hit the West hard. Saudi Oil Minister Sheikh Ahmed Zaki Yamani later remarked that the embargo had fundamentally shifted the balance of power from industrialized consumers to resource-rich developing nations.

Washington’s Response: Divide and Rule Until the Shale Revolution

In the years that followed, Washington sought to keep Middle Eastern influence in check. It adopted a version of Henry Kissinger’s triangular diplomacy—used to manage U.S. relations with Moscow and Beijing—tailored to the Middle East. This strategy often resembled a “divide and rule” policy, exploiting economic, political, and sectarian divisions to prevent a unified front against American interests.

This approach persisted until the rise of the U.S. shale revolution, which once again reshaped the global balance of energy power. The shift became clear during the 2014–2016 oil price war, when OPEC—led by Saudi Arabia—attempted to undercut U.S. shale producers but ultimately failed. American drillers emerged stronger, having slashed production costs to historic lows.

From Competition to Cooperation: Riyadh and Abu Dhabi Turn to Washington

OPEC’s largest producers realized that the U.S. had transformed its nascent shale sector into a lean, highly efficient, and flexible production ecosystem. This prompted both Riyadh and Abu Dhabi to seek American expertise to develop their own unconventional gas resources.

In Saudi Arabia, cooperation began in 2019 with the massive Jafurah shale gas project, involving several U.S. companies, including National Energy Services Reunited Corp., which carried out large-scale hydraulic fracturing operations. U.S. asset manager BlackRock led a consortium that invested around $11 billion in midstream infrastructure.

According to Saudi Aramco’s Q3 2025 report, the first phase of Jafurah remains on schedule for completion this year, targeting production of 2 billion standard cubic feet per day of marketable gas by 2030—a key part of Aramco’s plan to boost total gas output by 80% this decade.

In the UAE, Abu Dhabi National Oil Company (ADNOC) is driving shale gas development to meet rising domestic demand and expand export capacity. Musabbeh Al Kaabi, ADNOC’s executive director of upstream operations, confirmed that the company is working with U.S.-based EOG Resources to apply advanced hydraulic fracturing technologies.

The Ruwais region serves as a focal point of these efforts. ADNOC now operates the Diyab Unconventional Gas concession after TotalEnergies reduced its stake, and the project has entered full development. The UAE aims to produce 1 billion cubic feet of shale gas per day before 2030, while simultaneously expanding its LNG export capacity with a new terminal that will add 9.6 million tons per year—more than doubling current output.

LNG and Artificial Intelligence: The New Drivers of Demand

Both nations are betting on the growing importance of liquefied natural gas (LNG) amid forecasts for surging global demand driven by data center expansion and AI adoption.

Since Russia’s invasion of Ukraine in February 2022, LNG has become the world’s go-to energy fallback, thanks to its portability and flexibility compared to pipeline gas. Before the war, China had already secured long-term LNG contracts at favorable prices, insulating itself from later price spikes. Since then, the U.S. has helped Europe sign new long-term LNG supply deals to replace Russian flows.

Looking ahead, AI-driven computing, cloud infrastructure, and heat waves are expected to account for **40–50% of incremental global gas demand through at least 2040**. Data centers alone could add **150–200 billion cubic meters** of annual demand—an increase of roughly **3.6% to 4.9%** over current forecasts.

In essence, America’s shale revolution—once a domestic story—has evolved into a global force reshaping the Middle East’s energy ambitions, with Washington now exporting not only hydrocarbons, but the technology and strategy that underpin a new geopolitical energy order.

Palladium prices rose during Wednesday’s trading, supported by optimism in global markets as the United States moves closer to ending its longest-ever government shutdown — a development seen as a potential boost to demand.

The U.S. Senate made notable progress earlier this week after Republicans and Democrats reached an agreement on a bill to fund the government through January 30, paving the way to end the record-breaking shutdown that began in early October.

According to Capital.com, palladium prices have surged about 26% since the start of October to around $1,500 per ounce. This sharp rally came in tandem with gains in the platinum market and a broader easing in global financial conditions.

Expectations for U.S. interest rate cuts and a weaker dollar have also supported palladium’s rally as part of the broader “Gold + Liquidity” wave that has lifted precious metals in recent weeks.

Palladium is used almost exclusively in catalytic converters for gasoline engines, meaning that U.S. automakers and electronics manufacturers could face sharp fluctuations in costs.

Technical analysis from Monex indicates resistance between $1,500 and $1,520 per ounce, with expectations that the overall trend will remain bullish but volatile in the near term.

Analysts at CPM Group noted that palladium’s recent strength is “closely linked to platinum’s performance,” while warning that persistent U.S. labor market weakness and elevated inflation could pose obstacles to demand growth.

Despite the announcement of what has been described as a “truce” trade deal between Washington and Beijing, comments from U.S. officials suggest that tensions remain high. The U.S. Treasury Secretary said China remains an unreliable trade partner, while President Donald Trump stated that his administration will not allow the export of advanced Nvidia chips to China or other nations.

Meanwhile, the U.S. dollar index rose 0.1% to 99.5 points by 15:15 GMT, reaching a high of 99.7 and a low of 99.4.

As for trading performance, December palladium futures were up 1.1% at $1,490 per ounce as of 15:15 GMT.

Bitcoin fell on Wednesday, extending its recent losses as improved risk appetite in broader markets—driven by progress toward reopening the U.S. government—failed to spark meaningful buying in cryptocurrencies.

The world’s largest digital asset dropped 1.8% to $103,344.1 by 12:28 a.m. Eastern Time (05:28 GMT), after briefly touching $102,737.9 earlier in the day.

Bitcoin has struggled to regain momentum following sharp losses in early November, when it briefly dipped below the $100,000 mark. The recent recovery in risk sentiment across global markets hasn’t reached the crypto space, as traders have favored equities over digital assets.

U.S. Government Nears Reopening as House Prepares Vote

The U.S. government is close to ending its longest-ever shutdown this week, after the Senate on Monday passed a measure to extend funding through January 30.

The bill now heads to the House of Representatives, where the Republican majority has signaled its intent to approve it in a vote expected Wednesday, before sending it to President Donald Trump for final signature.

Optimism over an imminent end to the 42-day shutdown lifted risk assets such as equities, but traders remained largely cautious toward cryptocurrencies amid growing skepticism over Bitcoin Treasury holdings and corporate reserve claims.

China Accuses the U.S. of Stealing $13 Billion in Bitcoin

China’s cybersecurity authority on Tuesday accused the U.S. government of stealing roughly $13 billion worth of Bitcoin.

The allegations concern the theft of 127,272 Bitcoins from the Chinese mining pool *LuBian* in December 2020, one of the largest digital heists in history.

According to Chinese officials, the breach was a “state-level cyberattack” allegedly orchestrated by the United States.

JPMorgan Launches Institutional Digital Token

JPMorgan Chase & Co. this week began rolling out a new digital deposit token called *JPM Coin* for institutional investors, marking another step in the bank’s expansion into digital asset markets.

The token represents dollar deposits held at the bank and allows users to send and receive funds over Coinbase’s *Base* blockchain network, Bloomberg reported Wednesday.

Broad Crypto Decline Continues

Cryptocurrency prices broadly tracked Bitcoin lower as investor sentiment toward the sector remained weak.

Ether, the world’s second-largest cryptocurrency, fell 2.8% to $3,448.93, while XRP dropped 3.1% to $2.3986.

Oil prices fell by about 1% on Wednesday, pressured by a supply glut in the market, though expectations that the end of the longest U.S. government shutdown in history could boost demand limited losses.

Brent crude futures dropped 60 cents, or 0.9%, to $64.56 a barrel by 10:07 GMT, after rising 1.7% on Tuesday. U.S. West Texas Intermediate (WTI) crude fell 62 cents, or roughly 1%, to $60.42 a barrel, after climbing 1.5% in the previous session.

Ole Hansen, head of commodity strategy at Saxo Bank, said, “Both WTI and Brent remain trapped in a defined trading range, with short-term speculation being the main driver of market activity.”

Analysts have previously noted that excess supply continues to cap price gains. Earlier this month, the OPEC+ alliance agreed to freeze production increases for the first quarter of next year after starting to unwind its earlier cuts in August.

However, Tony Sycamore, an analyst at IG Markets, wrote in a note that reopening the U.S. government could boost consumer confidence and economic activity, potentially stimulating demand for crude oil.

The U.S. House of Representatives, controlled by Republicans, is scheduled to vote later on Wednesday on a bill already approved by the Senate to fund government agencies through January 30.

Hansen added, “While long-term demand prospects remain strong, the short-term outlook still points to oversupply, which limits the potential for price gains.”

Meanwhile, the International Energy Agency (IEA) said in its annual *World Energy Outlook* report released Wednesday that demand for oil and gas could continue to grow until 2050.

This marks a shift from its previous projections, which suggested global oil demand would peak this decade. The agency has revised its modeling approach, moving away from climate pledge–based scenarios toward one that reflects current, existing policies.

Both the Organization of the Petroleum Exporting Countries (OPEC) and the U.S. Energy Information Administration (EIA) are expected to release their respective forecasts later on Wednesday.