Simon Henderson is the Baker fellow and director of the Bernstein Program on Gulf and Energy Policy at The Washington Institute, specializing in energy matters and the conservative Arab states of the Persian Gulf.
Articles & Testimony
The duration and effects of the showdown may come down to price fluctuations and budgetary requirements in Moscow and Riyadh, but the U.S. shale industry will likely suffer either way.
A train wreck is about to occur in the oil market, and there will be casualties. Russia and Saudi Arabia, which previously had cooperated in making the world market well-supplied, no longer can agree on how to share the benefits. Today Riyadh announced it will step up output to a record 12.3 million barrels per day in April, the vast majority of which is exported. Russia also is increasing production but its incremental volumes are smaller. It’s a game of bluff: Who can survive longer? And we are the spectators...