
The cost of a barrel of oil dropped to as low as $28 per barrel recently, thanks to the Saudi’s flooding the market. The oil sheiks were hoping to ruin their American fracking competitors with price pressure. Shale oil responded by backing off or shutting down production as prices made profits impossible, but as I observed back in January when the American Shale-Oil industry is not drilling it is innovating.
Shale oil 1.0 changed the global oil game. The Saudis responded by increasing production. That increase has forced shale production down but the US shale-oil industry isn’t idle. It is getting ready for round two. Round two will come the moment the Oil Producing nations back off just enough, and Shale ramps right back up.



