Whereas Saudi Arabia has started a racedown on oil price, it is likely that the US would find it less and less feasible to produce oil rather than the initial targets of the move, namely Iran and Russia.
The Iranian Oil Minister Bijan Zanganeh had said last year that the increase in oil prices will never benefit the big producers of the black gold.
"As prices increase, Iran wont be able to use the opportunity because the rivals will rather produce and sell oil,” he had stated.
Mohsen Qamsari, director of the Iranian National Oil Company’s International Affairs has also recently said "An increase in oil prices will harm the big producers because otherwise the production of oil from unconventional sources would not be beneficial.”
Also, experts say that the US tapping into its unconventional resources will only work when the international prices are high.
Mohammad Sadeq Jokar, expert at the Iranian International Studies Institute says "The Saudi act in adjusting the market and steadying prices would be an incentive for further production of oil from unconventional sources, put production-demand out of balance, and lessen the weight of OPEC in the world’s oil market.”
He added "Currently, although Saudi Arabia is in need of high oil income for economic reforms, due to its conventional oil resource structure, it can go on with low prices as well.”
"The decrease in oil price is to dim the US prospect in expanding its unconventional oil resources, which will make the latter follow Saudi Arabia’s stances in strategic affairs more than before. On the other hand, the plungedown in the price of the black gold is to increase the power of Saudi Arabia in lobbying with the companies that produce oil out of unconventional resources to keep the prices high in order to influence the US decision making centers through their influence.”
Source: mehr news