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OPEC Cuts Output, US Shale Industry Rejoices

The American Interest

While OPEC — and in particular Saudi Arabia — bites the bullet and cuts oil production, producers around the world stand to benefit from a bump in prices. In the U.S., this should mean a corresponding rise in output as more shale plays become profitable.

For the first time in eight years, the Organization of the Petroleum Exporting Countries (OPEC) has agreed to collectively cut production, a delayed and somewhat desperate response to the precipitous drop in oil prices over the past 29 months.

The FT reports: