Why in 2015, did OPEC increase oil production as shale oil price fell below 50 dollars a barrel?
Shale oil production was producing millions of barrels of oil per day. Us shale oil producer competed arson opec producers. In the past OPEC could control the supply of oil being exported by controlling the amount of oil produced. Us shale oil producers remove open control of supply. Saudi attempted to put many us shale oil producers out of business. Instead of cutting back production, in 2015, they increased oil production driving oil prices below 50 dollars a barrel. OPEC did not realize, us shale producers could still profit even at $35 a barrel. Many shale companies heavy in debt and some financed by the junk bond market went out of business. Surviving, us shale producers became more efficient using new technology to extract more oil out of shale deposits. OPEC began diversifying money into foreign investments, foreign companies, and foreign real estate. OPEC departure from oil helped make us shale oil, the king of energy.
In western Siberia, the Bazhenov shale formation has a shale layer 30 to 90 meters deep. Approximately, 80 to 140 billion barrels of oil can be extracted from the bazhenov shale formation.
http://www.nytimes.com/2012/11/14/business/energy-environment/russia-anticipates-boom-in-oil-extracted-from-shale.html?_r=0
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