Oil Bust of 1986 Reminds U.S. Drillers of Price War Risks

The last time that U.S. oil drillers got caught up in a price war orchestrated by Saudi Arabia, it ended badly for the Americans.

In 1986, the Saudis opened the spigot and sparked a four-month, 67 percent plunge that left oil just above $10 a barrel. The U.S. industry collapsed, triggering almost a quarter-century of production declines, and the Saudis regained their leading role in the world’s oil market.
READ MORE: http://www.bloomberg.com/news/2014-11-26/oil-bust-of-1986-reminds-u-s-dr...