Hey, remember all that talk about U.S. energy independence and "Saudi America?" What a farce that was. The shale oil industry has never been able to make a profit, and they are drowning in debt. Now they drastically cutting production.
The U.S. shale oil industry that was supposed to be responsible for our energy independence is in the beginning stages of collapse.
According to the Baker Hughes rig count, since last year U.S. rigs have declined from 701 to 253.
https://rigcount.bakerhughes.com/
Remember:
energy runs the economy. GDP growth is only achieved by energy production/consumption growth, and oil is the chief energy source today. No oil production growth = no GDP growth. No GDP growth means that this global, debt based pyramid scheme comes crashing down.
Without shale oil, US oil production since 2006 would have remained flat. US shale oil has been responsible for 75% of the global increase in oil production since 2008.
Bailing oit the shale oil industry will only add another layer of bankruptcy to the US government. And even if they do get bailed out,
their 50% annual decline rate is not a long-term sustainable business model, unless the Federal Reserve can print more oil reserves, that is.
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