Saudi Arabia has succeeded in the removal of shale oil producers Americans from the market

The newspaper "Financial Times" pointed out that Saudi Arabia believes that the strategy pursued by the oil to displace competitors from shale oil producers Americans of the oil market had been successful.

According to "Financial Times" in an article published Thursday, May 14th / May that the Saudi strategy aimed to defend its market share by flooding the market with crude oil, led to the displacement of shale oil producers Americans from oil markets, and who did not bear the losses resulting from the decline in oil prices in the market , the fact that the cost of shale oil production is much higher than the cost of the ordinary, especially in the Arabian Gulf crude oil production, and that the kingdom is preparing to install itself as the dominant power in the world oil markets.

She drew the British newspaper that oil production in Saudi Arabia, a member of the Organization of Petroleum Exporting Countries "OPEC", record highs higher last month, and reached the level of 10.31 million barrels per day, at a time when non-existent signs of production cut by the Organization "OPEC".

The newspaper quoted a Saudi official did not remember his name: "There is no doubt that the low prices recorded by oil prices in recent months have led to a decline in investments in high-cost oil projects, including shale oil extraction projects for US companies and the production of heavy oil from deep water."

Saudi official confirmed that his country will continue to increase production despite political competition faced from inside and outside the organization, "OPEC", and despite the growing popularity of alternative energy sources.

And published the International Energy Agency on Wednesday statistical information to confirm the health of the Saudi statement on the US producers shifted, according to expert estimates, the number of drilling operating in the United States rigs fell by 60% as a result of falling oil prices, and that the shale oil production in the United States has practically ceased in the last month .

It is noteworthy here that the oil production in the Persian Gulf is characterized by lower cost as the cost of a barrel of between 15 to 40 dollars, which makes the US a strong shale oil competitor has a high cost, making extraction is economically viable projects, if the survival of crude oil prices at low levels.