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it would be foolhardy to risk capital in view of what happened in 1985 (remember shale oil)

I wasn't paying attention to shale oil back then. What precisely are you alluding to? Somebody lose their shirts? Today, of course, shale oil is supposedly economic at $35/bbl. Current price for oil...$65/bbl. Is anybody in the oil companies imagining that we're going back below $50/bbl, let alone to $35?

"I wasn't paying attention to shale oil back then. What precisely are you alluding to? Somebody lose their shirts? Today, of course, shale oil is supposedly economic at $35/bbl. Current price for oil...$65/bbl. Is anybody in the oil companies imagining that we're going back below $50/bbl, let alone to $35?"

I used to work with a guy from Utah who worked there in the early 80's, the industry started up when oil was at $34 bbl. and crashed when the Saudis drove the price down to $11 bbl. in 1985.

Saudi Arabia cannot do the same thing today, at present levels of consumption. But much of the world depends upon the US going into debt by 2 billion more dollars every day for their market. We get a cold, the world gets pneumonia. Any correction will affect commodities like oil.

It would be foolhardy to risk capital to produce oil as a high cost producer when the Arab's are able to produce it for $5 bbl. Any shake out in the market will wipe you out. In 1985 when the Saudis had the chance to strangle the baby in the crib, they did so.

We cannot have both free trade and energy independence, one works against the other.