Russia-Saudi alliance abandons assault on US shale as oil supply crunch looms

Russia-Saudi alliance abandons assault on US shale as oil supply crunch looms, by Ambrose Evans-Pritchard.

The oil alliance of Opec and Russia has abandoned efforts to drive US shale out of the global energy market, accepting the hard reality of America’s irrepressible frackers for years to come.

“To really fight shale we’d need oil below $40 a barrel,” said Kirill Dmitriev, head of Russia’s wealth fund.

“That is not good for the Russian economy and it is not good for the Saudi economy. It is not practical, and we are not going to try to fight it,” he told the World Economic Forum in Davos.

U.S. Set To Pump More Oil Than Russia And Saudis Combined, by Rystad Energy.

In a major shift, the United States is set to produce more oil and liquids than Russia and Saudi Arabia combined by 2025. …

Historically, the US, Russia and Saudi Arabia have consistently switched places at the top of the global list of liquid producers – measuring crude oil, lease condensate and plant natural gas liquids – but lately market-driven US oil activity and production has built significant momentum. The US has not seen its liquids market share exceed 50% among the “Big Three” producing nations since 1970. …

The growth in US liquids production will be driven by major shale basins such as the Permian in parts of Texas and New Mexico.

That’s going to cramp the style of Saudi Arabia and Russia.