Summary.
With the growth of “unconventional oil and gas producers” (e.g., U.S. shale oil drillers), the power of OPEC members to manipulate the price of petroleum is weakening. The days of crude oil reaching prices above $100/barrel may be long behind us; in fact, $50/barrel oil may be the new normal. Low oil prices for the foreseeable future presents new challenges and opportunities for producers and consumers. Nations that depend heavily on oil revenues will need to quickly address how to economies. Energy-intensive industries like airlines are seeing large profits due to the reduction in oils costs. Now is the time for political and business leaders to make the best decisions regarding this new status quo.