Price war threat to U.S. oil dominance
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Russia and Saudi Arabia are boosting oil production, pushing down prices and threatening America’s heavily indebted shale industry – U.S. shale oil companies need higher rates to remain profitable
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Crude oil production (million barrels per day)

Saudi  Arabia Russia   U.S

Jan 2016: West Texas Intermediate (WTI) crude falls to $26.55 per barrel, down from $50 in Jan 2015

Jan 6-Mar 30, 2020: WTI plunges from $63.27 to $20.09

Dec 2016: OPEC+ pact with Russia to ease global oil glut

Mar 6: Russia quits Opec+

7.7m U.S. shale production per day

2019: U.S. exports more oil and petroleum products than Saudi Arabia

Sep 2019: Attacks on Saudi oil facilities


13
12
11
10
9
8
  2016 2017 2018 2019 2020
     
13.0
11.3
9.7
10.6  
10.2
9.2

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Breakeven oil prices ($ per barrel) 

NEW MEXICO
OKLAHOMA
CANADA 
U.S.

U.S. non-shale oil $49 
Scoop Stack shale $53 
Permian shale $54 
Eagle Ford shale $51
Saudi Arabia $82
TEXAS Delaware $49
Midland $48
Foreign exchange reserves $490bn
Russia $42
Foreign exchange reserves $440bn
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 Sources: Bloomberg, EIA, Federal Reserve bank of Dallas, IMF © GRAPHIC NEWS