With oil prices rebounding after some major changes last June, experts in the oil industry are wondering if the prices have reached an all-time low and if there will be a new reality for oil pricing. “This is a market that’s far from settled down, and it’s a market that’s going to be a lot more volatile,” said Daniel Yergin, vice chairman of IHS. Furthermore, the United States shale oil production is still at a 40-year high.
Today, the shale oil industry produces around 4.5 billion barrels of oil a day, which is more than the production of oil counterparts Kuwait and the United Arab Emirates–combined. “The shale industry did not exist 10 years ago. That’s why OPEC and Saudi Arabia could not figure out what shale was all about. They missed the shale revolution. Finally, they had to make room for shale and frackers at the big table,” said Fadel Gheit, Oppenheimer & Co. energy analyst.
Fracking, or hydraulic fracturing, is an effective way for the United States to produce oil domestically. From bigger companies utilizing offshore drilling tactics to Marcellus Shale, which is located around the Midwest and East Coast, to smaller, Mid Atlantic oil companies like Cunningham Energy, the promising fracking industry has terrain covered all over the United States.