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U.S. Shale Or Saudi Arabia- Who Is Winning The Oil Price War?

Summary

It all started with the US shale boom that diminished OPEC’s long lasting dominance on the global oil markets.

No less than 130 North American oil and gas companies filed for bankruptcies since the start of 2015.

Saudi Arabia suffered another setback when the credit rating agency – Moody’s downgraded the desert kingdom’s credit rating along with Oman and Bahrain.

It all started with the US shale boom that diminished OPEC's dominance on the global oil markets. The world witnessed how Saudi Arabia dominated- OPEC ramped up its production levels since 2014, with an aim to reduce global crude oil prices and drive away the US Shale players out of business. Oil prices came crashing down and many Shale players went out of business. But, did Saudi Arabia really achieve what it was looking for? In spite of some of the imminent bankruptcies, the US shale producers were not as responsive to low oil prices as earlier thought and the US production did not decline. As we sit in the middle of 2016 with oil prices in the range of $45 a barrel, what is exactly happening to the Saudis and US Shale industry? Most importantly, who is winning the ongoing oil price war?

US Shale - Trying to Break Bad

Yes, the US Shale industry has proved that it can remain in the game in spite of sustained low oil prices and dwindling oil wells. As per data obtained from the law firm Haynes and Boone, no less than 130 North American oil and gas...


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