The shale oil introduction in the oil market has made a gigantic impact in terms of the supply, demand and prices. This evolution might affect the major players in the market for the short and long run. However, there are a number of crucial factors that affect this advance process in extracting shale oil.
First, the break-even price for United States’ shale oil is from 30$ per barrel to 90$ per barrel. In contrast, Saudi Arabia crude oil break-even price is 10$ per barrel according to financial times.
Second, the advanced technology that is used in shale oil has high capital cost, threatening most shale oil producer in the short term.
Therefore, the role of Saudi Arabia should not be analysed in isolation of the evolution of shale oil
First, the break-even price for United States’ shale oil is from 30$ per barrel to 90$ per barrel. In contrast, Saudi Arabia crude oil break-even price is 10$ per barrel according to financial times.
Second, the advanced technology that is used in shale oil has high capital cost, threatening most shale oil producer in the short term.
Therefore, the role of Saudi Arabia should not be analysed in isolation of the evolution of shale oil