Saudis Attempt to Kill Shale Oil

OPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says

OPEC policy on crude production will ensure a crash in the U.S. shale industry, a Russian oil tycoon said.

The Organization of Petroleum Exporting Countries kept output targets unchanged at a meeting in Vienna today even after this year’s slump in the oil price caused by surging supply from U.S shale fields.

American producers risk becoming victims of their own success. At today’s prices of just over $70 a barrel, drilling is close to becoming unprofitable for some explorers, Leonid Fedun, vice president and board member at OAO Lukoil (LKOD), said in an interview in London.

Cut baby, cut. Sell us your oil cheap to try to get the price below the point at which shale is economical. All that will happen is that you'll run out faster, and our oil will still be available in the ground. I can't wait for day the world becomes less dependent on the Arab oil producing states.