Considering how expensive the drilling technology is to extract resources like the Bakken dropping the bottom out of the oil market would cut our own throat.
The concept ignores the emerging oil markets in India, China, and elsewhere--the developing world. The slack would be taken up by other buyers, or there would not be any, eventually.
The only way to hurt them with oil is to deprive them of the revenue from it. Oil infrastructure is far from hardened, even there. Soft targets, every well, every pipeline, every production facility. But it will spill and burn and make a mess (recall the Iraqi retreat from Kuwait).
That’s where the other gases associated with natural gas come in. Locally the price of NG is too low to justify drilling. The areas that produce propane, ethane, butane and pentane are being drilled. There’s enough “wet” components that long term contracts are being signed. One recently signed contract is for ethane that will be shipped to Sweden to make plastic. A Brazilian company has an option on property and is going through the process leading to building a cracker to process ethane into polyethane.
Several companies have built strippers locally to remove the wet components from the NG.
Keeping your eye on the ball means considering everything coming out of the well. It’s not just oil or natural gas. The wet gases have initiated billion dollar projects. Don’t forget the shortage of propane last year due to agricultural usage that spiked prices. Oil in many cases is a by product locally.