Too small to shale

9 March 2020 By Lauren Silva Laughlin Follow @TheRealLSL

Black gold’s rapid price drop makes many Texas drillers and frackers uneconomic, threatening U.S. energy independence touted by President Trump. His administration could offer merger sweeteners, effectively forging state-backed oil giants to compete with OPEC and Russia.

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Oil prices suffered their biggest daily fall since 1991 on March 9, a day after Saudi Arabia slashed its official selling price and announced plans to raise crude production significantly, signaling the start of a price war. By 3:50 p.m. in New York on March 9, Brent crude fell 24% to $34.48 per barrel and WTI was at $31.03.

Saudi Arabia, the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day (bpd) in April, after the collapse of the Organization of the Petroleum Exporting Countries’ supply cut agreement with Russia, two sources told Reuters on March 8. State oil giant Saudi Aramco will boost its crude output after the current deal to curb production between OPEC and Russia - together known as OPEC+ - expires at the end of March, the sources said.

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