The Saudis have a much lower cost of production than America's frackers. Most fracking is uneconomic below $70 barrel. The triumphant tone is all out of whack with has happened in financial markets the last few months. Take a look at the fracking companies share prices, and prices on their bonds (many of them below investment grade). They have gotten killed, because at these prices most of these companies are losing money. The Saudis, on the other hand, have budgeted much higher oil prices, but they can cover their marginal costs at these prices, they have no debt to pay off, and they have huge dollar reserves. You can believe BW or the financial markets, but the financial markets have it right. See the following on Straight Line Logic: http://straightlinelogic.com/?s=oil+ushe...