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The U.S. economy received an unexpected jolt of good news with the sudden drop in oil prices. This comes at a great time for consumers, as gas prices plummet at the pump and it gives the American public an unexpected stimulus right in time for the holidays.

Prices have dropped considerable as the supply of oil has increased which coincided with the slowdown in China and in Europe, but the tremendous expansion of energy in the U.S. has added to the energy glut and contributed to the drop in the price of gas prices.

The revolution in shale technology, which has been made possible with the advent of new drilling technology, has enabled the U.S. to become more energy independent than ever before.

Market Watch reported that speaking at an energy conference in Abu Dhabi, Saudi Oil Minister Ali al-Naimi blamed a lack of coordination from producers outside the Organization of the Petroleum Exporting Countries—along with speculators and misleading information—for the slump.

Continued in its reporting Market Watch mentioned OPEC officials have singled out American shale producers as a particular problem. U.S. oil production has soared as a result of the shale boom, reducing OPEC exports to the U.S.

As a result of falling oil prices Saudi Arabia has been reluctant to curtail oil production as it remembers the failed polices it enacted in the mid-80’s which had devastating impacts on its economy.

At the same time Saudi Arabia which contributes one third of the Organization of the Petroleum Exporting countries (OPEC) oil production is in serious competition with Iran, as its economy is now in free fall because of the decline of oil prices.

Right now other despotic regime economies which are heavily dependent on energy exports are now seeing the severe retraction felt throughout their economic system.

Various reports have written Russia’s economy dropped considerably in recent months as its economy is heavily dependent on energy exports, and the country’s central bank had to raise interest rates to 17% in order to prevent the ruble’s collapse.

The collapse of oil prices is not only affecting Middle Eastern nations and Russia, but its impact is felt in our own hemisphere.

With President Obama’s unilateral action on ending the decade’s long boycott of Cuba, it gave the nation a lifeline as previously it received reduced rates on energy from oil rich Venezuela.

Venezuela’s failing economy could no longer support the welfare of energy to Cuba and had to adjust to its own needs first, as this forced Cuba to find other alternatives to stimulate its economy.

The decision by the president was practical in one way but he failed to gain sufficient leverage from the Castro regime to help the Cuban people.  This deal was more a win for Cuba then the U.S. as now the Castro regime gains much needed hard currency for its failed economy.

The sharp reduction in energy prices the U.S. will have to adjust its foreign policy strategy to reflect to this new change.