OPEC, and especially OPEC+, has always seemed to be at odds with the U.S. shale industry. From the drastic oil embargos of the ‘70s to the all-out oil price war of 2020, OPEC policies have threatened to upend the United States’ use and production of crude. But the group’s latest policies may be a lifeline for U.S. shale, which is struggling under the weight of the new pandemic world order.

Frenemies at Last

OPEC and the United States were once at bitter odds. In the days of the oil embargo, the situation was sticky and heated. Today, it’s more of a smoldering competition. OPEC–and now OPEC+–is trying to hang onto its own market share while maintaining adequate price levels for its members’ oil revenue-dependent budgets. It’s a lot to juggle. US shale, on the other hand, is operating in an every-man-for-himself mode, with less efficient producers folding under the crushingly low oil prices, and more efficient producers picking up assets for a song.

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Source: Oil Price