If oil drops below $80/bbl a lot of the production from fracked wells becomes uneconomical. Couple that with an oversupply of light-sweet crude and the inability to export and you have a recipe for falling prices which in this case would not be a good thing.
“If oil drops below $80/bbl a lot of the production from fracked wells becomes uneconomical. Couple that with an oversupply of light-sweet crude and the inability to export and you have a recipe for falling prices which in this case would not be a good thing.”
Untrue. costs to produce a well are much, much lower than $80 per barrel.
What lower oil prices will do is prevent a lot of new wells from being drilled, so that production will never reach the market.
For America, but what about the Saudis?