Quote:
Originally Posted by Lubicon
US shale producers are like cockroaches. Last time the Saudi's tried this they decimated the North American industry and as soon as prices went up they came right back. It will be painful here but if the long term strategy is for them to permanently put the shale producers out of business I'm not sure that works.
Plus how long can they go with low prices, they have an government that relies on oil revenue for the vast majority of its revenues for the country as a whole. I had heard a few years ago that their spending promises to the people would require $100+ oil to fund.
Nobody wins in a price war.
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Lots of debt on the shale side in the US these days. They won't be so resilient this time. The shale market was having issues prior to all this.