Oil Rig Sunset OPEC’s strategy in the past have been to maneuver its oil production to bring about market stability. However penetration of U.S. shale oil forced them to alter their strategy in favor of market share even at the cost of lower oil prices. This paper intended to carry out some vigorous quantitative analysis and assess/forecast the possible implications on shale oil production under alternative oil price scenarios. What if, oil prices are allowed to gradually increase to December 2020 (Reference case) and what if oil prices remains weak and decline over the forecast period (Low case)? Based on assessment some policy conclusion may be drawn. Mastering technology – constantly lowering break-even cost The shale oil boom that started with stable oil prices of over $100/bbl continued several months even after collapsing of oil prices. Higher oil prices provided excellent opportunity for the shale oil industry to learn […]