One Year Later and OPEC Still Hasn't Killed Shale

The two words meant to doom shale drillers hasn’t had as deep an impact as feared.

"No change." It was roughly one year ago that Kuwait's oil minister succinctly delivered the message that would turn the oil market on its head. The group of oil producing nations had decided to keep the organization's output at a ceiling of 30 million barrels per day, despite the fact that supplies were surging thanks to U.S. shale producers while demand, especially in China, was weaker than expected. Those two little words sent the price of crude into a tailspin from which it has yet to recover.

Brent Crude Oil Spot Price Chart

One Year Later and OPEC Still Hasn't Killed Shale 8ea1caa944fd58a84dddf3579f63c534

One Year Later and OPEC Still Hasn't Killed Shale 8ea1caa944fd58a84dddf3579f63c534

Halting the ascent
Those two words really inflicted significant damage to the worldwide oil market. Investment in new oil projects plunged with $200 billion of investments in new oil projects being deferred this year, and upward of $1.5 trillion in future projects at risk of not being developed due to challenged economics at current oil prices. Meanwhile, closer to home, shale drillers slashed capex spending, with many spending cutting spending by 50%. This cutback led U.S. oil production to peak earlier this year, before turning over into what's expected to be a steady decline for at least the next year.

http://www.fool.com/investing/general/2015/11/28/oil-prices-one-year-later-and-opec-still-hasnt-kil.aspx?source=eptfxblnk0000004

One Year Later and OPEC Still Hasn't Killed Shale

One Year Later and OPEC Still Hasn't Killed Shale

Anarcho-Capitalist Categorical Imperatives

AnCaps' Laissez-faire Free Trade Zone