Welcome to Week 2
Oil prices fell from a peak of $115 per barrel in June 2014 to under $35 at the end of February 2016.
This week, we will explore the US Shale Revolution and how it has affected oil prices over the past few years. Besides the Shale Revolution, what other factors do you think were also relevant to explain the causes of low oil prices?
Can shale producers withstand the low oil price environment? Some argue that the US shale boom needs both high prices and low interest rates to sustain it.
Therefore, Saudi Arabia, the logic goes, will prevail over shale drillers. While lifting costs have fallen in North America, there are high levels of anxiety among OPEC producers and Russia as a result of the recent drop in oil prices.