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Originally Posted by Ironhorse
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Not the greatest article in my opinion. Technology unlocked a ****tonne of oil in the US and production was climbing rapidly.
What was to stop it from continuing up and eroding Saudi market share. The author's premise is based on an assumption that US production levels were flatlined and that the Saudis were trying to push them lower.
The Saudis aren't trying to push them lower. They are trying to stop them from climbing even higher.
The $1T "mistake" the author references was really just an inevitable loss of value caused by a technological shift in drilling. They just chose to take that loss early on the chin in an effort to bankrupt as many of the highly levered shale guys as possible. But those guys will pop up again once prices hit ~$80. It's a game of whack a mole that will keep a pretty firm ceiling on prices until demand grows significantly.
Technology is such a disrupter to markets. It's facinating to watch.