U.S. Shale Industry Reacts to OPEC’s Oil Flood, Facing Cuts and Market Downturn

The U.S. shale industry is bracing for significant upheaval as cheap oil from OPEC continues to drive prices down below profitable levels. This price war, spearheaded by Saudi Arabia and Russia, has plunged global markets and led to a historic decline in American oil production, threatening the industry’s future. 4-year low rig numbers reflect this. According to the Financial Times, the conflict is pushing the U.S. shale industry to its knees. Companies are cutting budgets, freezing spending on new drilling projects, and shrinking workforce. This downturn comes at a time when President Donald Trump’s administration calls for increased domestic oil production.