Hydraulic fracturing or fracking made a dramatic entrance into the national and international scene between 2009 and 2014. During these years, the United States became the world's top oil producer. It also created a huge demand for trucking to haul sand, water, equipment, drilling fluids, and other materials.
OPEC responded to this challenge by flooding the market with oil to drive down oil prices below the break-even price for doing fracking profitably. The intent was to bankrupt the fracking industry and rid OPEC of the competition. This tactic did suppress fracking, but at the same time, it stimulated innovation within the industry to operate more efficiently. As a result, fracking can now produce oil at profit at prices higher than $50
OPEC responded to this challenge by flooding the market with oil to drive down oil prices below the break-even price for doing fracking profitably. The intent was to bankrupt the fracking industry and rid OPEC of the competition. This tactic did suppress fracking, but at the same time, it stimulated innovation within the industry to operate more efficiently. As a result, fracking can now produce oil at profit at prices higher than $50