After the revolution of "hydraulic cracking", does the OPEC, led by Saudi Arabia, really control oil prices?

(CNN) – OPEC is widely accused of fueling high oil prices and looting consumers, but on the ground OPEC is no longer as powerful as before.

There are two reasons for this: the first is that the revolution in hydraulic cracking in the United States over the last decade has made it less dependent on its product. The second is that Saudi Arabia has not been able to effectively control OPEC members.

OPEC is the acronym of the Organization of the Petroleum Exporting Countries (OPEC), whose members control nearly 40% of the world's oil supplies and are expected to work together to determine the amount of oil to be produced. It is simply supply and demand. To raise the price of oil, OPEC members have agreed to reduce production and increase production.

But that does not always work that way, at least not anymore. "The OPEC has gained its reputation of controlling the global oil market during the 1973 oil crisis, as some OPEC members have banned the United States," said Jeff Collgan, professor of relations at Brown University.

But along the way, OPEC member states have stopped listening to the real leader of the group, Saudi Arabia. The Gulf country set targets for oil production for the rest of the members. The other members, however, did not always comply.

"If the other members join Saudi Arabia and have already committed to taking a share of the production, they may be able to change some of the world's oil prices, but the problem is that some members of the oil industry will be able to do so. OPEC have the motivation to cheat because they produce much less, so they need more money than Saudi Arabia. "He said.

The power of OPEC has been declining for decades, followed by the revolution of the hydraulic fracture in America. Prior to 2008, the United States imported most of its crude oil, but technological breakthroughs allowed US firms to access significant shale oil reserves.

Last year, the United States became the world's largest producer of crude oil, both in Russia and Saudi Arabia. But there is something to consider.

"There is no doubt that crude oil has reshaped the international energy arena, but the United States can not live only crude oil.It is light.The US refineries need to incorporate this crude oil." said Matt Egan, editor at CNN Business. Very light with heavy crude oil, usually found at OPEC. "

OPEC can not be completely excluded: the organization may not have the same strength as in the 1970s, but it still plays a role in this area.