U.S. Shale Oil Resilience: What OPEC Didn't Expect
It has been over a year since OPEC declared its market-share cold war against shale oil producers, yet the cartel still can't declare "mission accomplished" and claim victory.
Following its decision not to cut oil production, OPEC expected oil prices to drop to $70 a barrel, which they thought would be enough to squeeze many shale oil producers out of the market.
The reality proved otherwise. Shale oil producers were able to react quickly to reduce their costs through various cost-cutting measures to weather the storm of low oil prices. And many of them managed to survive at those prices.
- Asif Ehtesham