Now the Battle of Oil Producers Really Begins

Houston Chronicle | Chris Tomlinson

US shale companies are coming back strong post-recession.

Round one of the competition for dominance in the crude oil market is over, let the crux of the battle begin. The Organization of the Petroleum Exporting Countries, which produces a third of the world’s oil, is out of easy tricks to sell as much oil as they want at a price that meets their revenue needs. Their nemesis? U.S. shale companies. Enough shale companies have survived the crucible of low prices that they are coming back strong. The fact that OPEC is limiting production now to keep prices from going down is giving them hope, even if the promise is really quite tenuous.

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