Let’s say 90% of your nation’s income is from OIL. Why would you encourage LOWER oil prices?
When you see small American companies obtaining previously unreachable oil with (relatively) new technologies – and succeeding enough to (cumulatively) greatly increase American oil production – reducing dependence on your oil – what can you do to drive them out of business?
The easiest method is to lower your oil price below the price at which they can be profitable. You (an oil rich nation with hundreds of billions in reserve cash) can make it through the lean times of less profits. Small American oil companies making no profits will go out of business.
| Drilling Region | Breakeven Begins |
| Permian Basin | $75 |
| Bakken | $75 |
| Eagle Ford | $65 |
| Mississippi Lime | $83 |
| Texas Panhandle | $81 |
| Niobrara | $78 |
| Scoop | $91 |
| Tuscaloosa Marine | $86 |
Full Article HERE
Oil is currently about $64/barrel and predicted to fall further. Bye bye, new competition! Hello more completely dependent America!
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