This analysis suggest that low oil prices will likely persist. It seems that U.S. firms are more competitive than previously thought:
But U.S. firms haven’t assumed that role as readily as the Saudis would have hoped. Rather, they’ve been hard at work innovating their way to profitability even at $65 per barrel. True, shale growth is expected to slow this year and the next, but it isn’t going away. Combine that with production growth from other non-OPEC producers, and what the cartel is left with is a longer-term price war than it likely bargained for.
Good. H.T. Instapundit
(Originally published on my personal blog 5-16-2015)