|
The Saudis tried to kill the US fracking (and other "unconventional oil" producers) by flooding the market. Turns out, the fracking industry got hurt, but not killed off. They can't frack much at $30/barrel, but right now, oil is approx. $50/barrel. If it goes even to $60 (and there is confidence it will stay there), the frackers will start drilling again, and supply will increase containing prices. This will be good for US energy jobs, but gas will go up a bit. BUT, I highly doubt we will see $100-$140/barrel like we saw before the frackers came onto the scene. I am comfortable paying a bit more in exchange for more US jobs.
And don't forget, the Russians and others constantly cheat on these quotas all the time. The Saudis may end up getting hurt more than anyone. They will lose market share, and the price will not recover to pre-fracking levels.
|