Texas Shale Oil Has Fought Saudi Arabia To A Standstill

[Purveyor]

Opec's worst fears are coming true. Twenty months after Saudi Arabia took the fateful decision to flood world markets with oil, it has still failed to break the back of the US shale industry.

The Saudi-led Gulf states have certainly succeeded in killing off a string of global mega-projects in deep waters. Investment in upstream exploration from 2014 to 2020 will be $1.8 trillion less than previously assumed, according to consultants IHS. But this is a bitter victory at best.

North America's hydraulic frackers are cutting costs so fast that most can now produce at prices far below levels needed to fund the Saudi welfare state and its military machine, or to cover Opec budget deficits.

Scott Sheffield, the outgoing chief of Pioneer Natural Resources, threw down the gauntlet last week - with some poetic licence - claiming that his pre-tax production costs in the Permian Basin of West Texas have fallen to $2.25 a barrel.

MORE...

http://www.telegraph.co.uk/business/2016/07/31/texas-shale-oil-has-fought-saudi-arabia-to-a-standstill/

[ret5hd]

1. I don't know if it is really something to celebrate.

More chaos in the ME is kinda scary.

[Nitram]

2. A win for the U.S. energy industry, a loss for world fight against climate change.

[awoke_in_2003]

4. Yep...

and not to mention ground water.

[Hestia]

3. But just last week, reports were stating that the energy sector has lost millions and have laid off

(almost) entire towns, who pushed for those jobs. Community Colleges no longer teach frackin' in their curriculum's.

So which is it, US oil sector a bust, or it's just there to break SA and the ME?

A energy sector watchdog or whatever, stated that it would be over a year before any frackin' gets back up and going, due to the collapse of the barrel.