talk shit on internet about trump

US shale oil companies are not feeling punished by $100 oil prices. They have the highest cost basis of all producers and they cease all new drilling when prices fall below about $65. Once wells are in production, they don't shut them down no matter how low prices go, but they cannot profitably fund new production unless oil prices are high enough. The Saudis on the other hand have the lowest cost basis in the world and can undercut the global market all the way to the bottom. The Hormuz blockade is funding the buildout of US Oil. The US has no incentive for it to end.