With the technology to extract oil out of the earth’s crust virtually anywhere, Saudi Arabia and OPEC are keen to bury this booming industry in the United States.
By dropping oil prices, Saudi is hoping to deter people from investing further in this oil production technology. The challenge to them is that they are going to have to keep doing it for two years or more. New upstarts may be discouraged to drill, however existing sites are already invested and will continue to produce more.
Wall Street specialists say the cat is out of the bag on this for OPEC. Why? This is not a location based discovery but more a breakthrough technology that can be used anywhere. It will be hard to beat as even resource deprived nations like Japan will be able to get their own resources in country.