FX.co ★ Slump of oil prices affects shale oil producers

The U.S. shale oil producers will face a serious challenge. According to experts, two weeks after the OPEC decision to maintain the current oil output, it becomes clear that the continuing contraction of the oil market puts quite a pressure on the shale oil developers in the USA.
In November 2014, the OPEC cartel refused to cut the output making the American shale oil producers responsible for the stabilization of the market that had already tumbled down 40%. UAE Minister of Energy Suhail Mohammed Al Mazrouei said that these American companies and other shale oil producers that created excessive oil supply on the global market should respect the market demand.
CEO of one of the largest U.S. shale oil producers – Pioneer Natural Resources – Scott Sheffield believes that OPEC has already “declared war” on the U.S. oil industry. Experts note that the oil industry has already faced the threat of a huge investment and oil production cut, assets sale and even bankruptcy.