i think i made a mistake

things will stabilize out and its really only going to hurt the little guys. individuals working in the oil fields small oil company's ect. nd has several incentive programs to encourage oil company's to continue drilling in the event of low oil prices. the large oil company know that prices will come back up and have the pocket books to operate at a loss and wait for a rebound. they will still cut production back and downsize operations depending on how long the down turn lasts. I think shale oil is here to stay its just a question of at what scale. shale is certainly more viable than several other ways of extracting oil. I just wish i had a couple old fuel tankers laying around to stock up on fuel while its cheap.

 

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The only thing I don't get about the 'Saudi Arabian crude oil price war'
is "why should they be forced to reduce their output?

They have been pumping roughly the same amount for decades.

So it ACTUALLY is the 'UNITED STATES crude oil price war'.
If you are looking at a causative action it is the US.

Don't get me wrong. I'm happy we're pumping more oil.
This is what caused prices to drop,
not the Saudis.

One great side effect is massive socialist states that suck the oil revenue dry
without investing in more drilling and technology, like russia and venezuela
go broke. They need to cut massive handouts. Maybe Iran's leaders
can tell their people "let them eat enriched uranium"[sic], where they've wasted billions.

If american drillers can't all afford to keep drilling when prices go down,
that's a bet any free enterprise business makes,
that it can make a profit,
and they don't always profit.

If they slow down drilling, then that oil remains in the ground
as a hedge against future price increases.

For many years we subsidized US drilling through tax incentives.
This dried up much of the easy to get oil, leaving us dependent on foreign oil.