U.S. shale oil drillers lock horns with OPEC

Oils prices are at a record low due to increased oil production in Saudi Arabia – the world’s largest oil producer. Nevertheless, the Organization of Petroleum Exporting Countries (OPEC) refuses to budge on production cuts amidst falling oil prices. This could have a ripple effect on the U.S. shale oil industry, which is now facing a risk of a market share battle with OPEC.

Oil production in U.S. shale fields is more expensive. Stabilization in oil prices through production cutbacks would generate some relief for them. U.S. shale output will remain the major source of new oil supply by the end of the decade.

U.S. oil production was set to rise to 11.6 million barrels a day in 2020 – from 9.2 million in 2012 – making the U.S. the top oil producer by 2015. However that projection was made before the current low oil prices wrought havoc on the shale oil industry.

It remains to be seen if U.S. shale oil drillers can recover from the ongoing price war with OPEC countries.

https://www.spireresearch.com/newsroom/spirethoughts/u-s-shale-oil-drillers-lock-horns-with-opec/

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