I just don't get the point of letting Saudi Arabia's manipulations destroy domestic oil production. Our goal should be self-sufficiency.
What you post is only a small view of the bigger picture and your view is not informative to the bigger picture.
Yes, it’s true that oil ‘production’ falls off rapidly as your graphic shows but you are neglecting to inform that 95% of the oil remains behind after the production falls off.
The production falls off because drillers rely on the natural pressure to bring the oil to the surface and it is the declining pressure that causes the production to wane.
Technological developments are solving the pressure fall off by pumping high pressure inert gas and water to bring the remaining oil to the surface.
In short, your view neglects to mention that American technologists are never stopping to bring new methods to the problem just as they did with the technology that underlies the boom, hydraulic fracturing.
The domestic oil boom will continue because of American technology, innovation and ambition. And the margin to economic feasibility will continue to change as more efficiencies are realized just as they are today. It never stops because even a $5 profit margin is enough for investors and innovators to get in and stay in the game.
I think the Saudi attempt at a price war hurts them in the long run.
http://bakkenjournal.uberflip.com/i/251815/45