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Saudi Arabia Is Defeated... By Texas 

By: micro1 in POPE IV | Recommend this post (2)
Tue, 02 Aug 16 11:11 AM | 46 view(s)
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Texas shale oil has fought Saudi Arabia to a standstill


Orion Drilling Co's Perseus rig in Webb County, Texas
Orion Drilling Co's Perseus rig in Webb County, Texas. Oil and gas production in the US state's Eagle Ford and Permian basins have transformed the global market

31 JULY 2016 • 4:35PM

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.


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




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