Saudi Arabia should be troubled by the following chart. It shows why American ingenuity and free markets are quickly finding ways to more efficiently and cheaply produce crude oil — bad news for the Saudis.
US #oil production holding up despite drop in rig count. Visit our blog for info like this: http://t.co/ebylXWB6Nk pic.twitter.com/FItgyMbpD9
— IHS (@IHS) May 28, 2015
Yes, there have been job cuts and fewer oil rigs being used to drill new wells, but companies are becoming more efficient and focusing on the most productive shale plays. That means companies are producing more with less.
So what’s going on here? Lots of news coverage lately has focused on how the U.S. oil industry is struggling amid low crude prices. It’s hypothesized by some energy experts that Saudi Arabia is continuing to pump out oil, therefore keeping prices down and pricing out costlier shale production.
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