Saudi’s will keep the price war going to drive others out of business. Fracking has been a great deterrent to their increased pricing. Since the Saudi’s have more than likely paid for all their infrastructure and the new U.S. producers have NOT yet done so, it will put a major hurt on those U.S. suppliers, not to mention all the new EPA regulations coming forth. Going to be interesting year ahead of us.
I’m not worried about the Saudis. We can beat them with our productive capacity, no matter what they do to kick prices up or down. I’m worried about the commies. In the WH. In the EPA. They are our true and lasting enemies.
Some of this is probably true. Yet the fracking industry will go on. The technological advances in fracking cannot be uninvented. It may indeed take a temporary hit, but the shale gas will be brought out. It may be in 2 years or it may be in 20 years. Thats what great about the market,its fairly good at reacting to price. Admittedly I dont know how quickly shale fields can be brought back online. However, if the Saudis want to stop shale production long term then they have to keep the oil price down long term.