This content was posted into the energy tribe, a user created community! Be sure to check it out for more similar content posted by other like-minded individuals!
Thousands flocked to the state, building their lives around drilling. Then the price of oil plummeted.
I don't think OPEC can maintain it's stranglehold on the oil supply price for too long, their own members are suffering under these price drops. If the American Industry holds on or at least leaves functioning and maintained equipment in the field, eventually they can return and pick it back up. Oil prices have already started the reverse and are creeping back up. The only way to stop the American fields from becoming profitable again is if Saudi Arabia and other richer OPEC members subsidize the losses of the smaller members. Unless OPEC really believes by altering the supply we'll just leave no matter what the price does in the future. I find that a laughable opinion though.
It may not be about bankrupting American producers. That house of cards was soaked in more debt than oil to begin with, so collapse would've come sooner or later. Whatever the Saudis are playing at, something tells me it's not about busting the U.S. boom.
Precisely the effect OPEC has in mind. The only question would be how long will OPEC members maintain, on the other hand they can not afford not to.