After Pres. Trump left town, Saudi leaders moved on to the pressing business of bolstering oil prices. For the past several decades, major oil exporting countries have been able to control oil prices by cutting back production. OPEC, the Organization of Petroleum Exporting Countries, agreed on oil-production cuts with Russia in late 2016. Though many were skeptical that the countries could stick together on their cuts, they largely appear to be doing so and on May 25 they agreed to extend the cuts.
The production cuts are just not boosting oil prices like they used to. The problem is that now U.S. shale producers are improving their technology to be profitable at lower and lower oil prices. Meanwhile, Saudi Arabia is actively trying to diversify its economy, and they need American support to fight terrorism. So Pres. Trump’s trip comes with America in a much better position. Thanks largely to fracking, he was able to spend his time selling U.S. weapons and asking for cooperation in fighting ISIS.
Natural gas markets have been disrupted by shale as well, in large part thanks to the Marcellus region encompassing West Virginia, Pennsylvania, and Ohio. America was set to become a major importer of gas, likely increasing its dependence on Russia and gas-exporting OPEC states like Qatar. Now, America is becoming a gas exporter itself and production in the Marcellus continues to grow as new infrastructure is built to move gas to market. If you want to get your company in on the action, visit Cimmaron Land to get in touch with some of the best land men and women in the area.