Summary Shale oil is totally different from conventional oil – production tracks oil prices lagged one year; new wells get payback in two years and their production is hedged. U.S. shale oil production in 2015 will be 6 Million barrels/day up from 4 Million in 2014 -regardless of oil price slump. Production will be flat in 2016 if oil prices stay low – which likely they will for four years. Saudi Arabia did not engineer the drop in oil prices – likely it was prospects for massive increase in U.S. shale-oil production. According to Reuters and CNN …and others, “OPEC” has declared war on shale-oil drillers in America. That’s a serious accusation. In the not too distant past whole countries were bombed back into the Stone Ages for lesser transgressions!! Saudi Arabia was the only OPEC member to forcefully advocate not cutting back, so for “OPEC” read “The Saudis” […]