Oil & Gas Production Gaining : Saudi Low Balling Failed

That the Saudi's made the wrong decision to keep the oil prices low to try and strangle the smaller producers and those using "fracking", but in fact those using these techniques are moving forward and beating the Saudis at their own game, has to anger Mr Obama.

Given his ideology of driving America into financial ruin to punish us for his perceived American wrong doing by killing the coal industry and denying the Keystone Oil Pipe Line, but in fact it really has nothing to do with wrong doing, he just doesn't like America as it was founded.

Mr Obama's plan, in conjunction with the Saudis, to drive the oil and gas industry into decline, has failed, at least for now. The progressive socialist liberal democrats will not give up in their quest to diminish America anyway the can.

The Saudis Gambled and Texas Won
Source:  Glenn Hegar, "The Saudis Gambled and Texas Won," Wall Street Journal, August 31, 2015.

September 10, 2015

Although oil prices were falling in November of 2014, Saudi Arabia decided to maintain a high level of oil production. The rationale was that producers using more expensive extraction methods, such as hydraulic fracturing and horizontal drilling, would soon be in trouble due to the low prices. However, in 2015, revenue from Texas oil-production taxes reached nearly $2.9 billion, higher than projected even though oil prices were lower than originally estimated.

• Texas produces 37 percent of all U.S. oil and 28 percent of natural gas.
• Oil and gas production only account for 14 percent of Texas' gross state product.
• Advancements in technology are reducing the cost of shale production with "octopus" wells supporting up to 18 horizontal shafts from a single vertical hole.

Oil prices will always fluctuate, but American innovation and talent continues to encourage greater efficiencies. Saudi Arabia hoped that by keeping prices low they could maintain their hold on a portion of the oil market and kill what some have called the U.S. energy renaissance.

Fortunately for the United States. and for Texas, their prediction was incorrect and the U.S. continues to be a major contributor in international oil production.