They're trying to hurt Russia for not agreeing to production cuts, we're just collateral damage. Trump mentioned that they were aware of the situation and working on a remedy for the shale oil producers.
Yeah, they can hurt Russia a lot because Russia's oil wells are traditional and they are in the far north of Siberia which makes the overhead on those wells quite high. Capping those wells is not an option for Russia as drilling new ones will be very expensive and in the mean time, Russia wont be producing anything. Russia will have to eat the loss for as long as they can and it's going to be a big financial strain on their oil industry, and by extension, their economy.
Cutting prices will certainly be a big threat to Russia, but not so much to America.
...or, Russia can just give in to the Saudi's demands.
They're trying to hurt Russia for not agreeing to production cuts, we're just collateral damage. Trump mentioned that they were aware of the situation and working on a remedy for the shale oil producers.
Yeah, they can hurt Russia a lot because Russia's oil wells are traditional and they are in the far north of Siberia which makes the overhead on those wells quite high. Capping those wells is not an option for Russia as drilling new ones will be very expensive and in the mean time, Russia wont be producing anything. Russia will have to eat the loss for as long as they can and it's going to be a big financial strain on their oil industry, and by extension, their economy.
Cutting prices will certainly be a big threat to Russia, but not so much to America.
...or, Russia can just give in to the Saudi's demands.