The Saudi’s know exactly how to respond to our domestic oil industry. They are leveraged to the teeth and have to pump oil from the ground just to pay their massive debt. If the Saudis can continue to flood the market with cheap oil, they will drive many of them, including some very large ones, into bankruptcy.
Come on people! No way U.S shale can compete with Saudi oil. What we can do is put A WHOLE LOTTA OIL on the world market. Combine that with ANWAR /Keystone pipeline and last -the Yucca Mountain project. Watch our enemies squirm. Sorry but Trump would do it. I’m a Cruz man.
Bankruptcy indicates a healthy degree of competition in a free market. There is no world power that can regulate, tax, or otherwise destroy the free market for oil. As price goes down, only the healthy will survive. As the market corrects, then it will allow newcomers into the market. Let’s do this with health insurance and pharmaceuticals. Portability of health insurance, ie: allowing more competition in the marketplace will drive prices down and quantities produced up. Same scenario.