The Research Of Impact Of Low Oil Price On American Shale Oil Industry

In recent years,American shale oil industry has rapidly expanded,shale oil production also has increased rapidly,it makes America crude oil reach about 9500 thousand barrels per day.However,the international crude price began to fall in June 2014,and it keeps 40~50 dollars per barrel in the first three quarters of 2015,studying of the impacts of oil price falling on the America shale oil industry has a very important practical significance.This paper services the literature research as the main research methods.First of all,it research the cause,process & model of U.S.shale oil industry,and recognize the high crude oil price promote this industry rapid development,the shale gas and oil companies' joint ventures & mergers & acquisitions promote large-scale development of shale oil.Second,it analyzes the reason of the dropping in oil prices and forecasts the future of oil prices,the fact of world crude oil production exceeds market demanding and the appreciation of the dollar continues to suppress oil price,however,the war in Middle East will promote the oil price.Finally,it analyzes the impact of low oil price on shale oil companies and industry: low oil price bring the shale oil companies market value decreasing,shortage income grows,profit margins decline,asset debt increases,cash flow reduces,low oil price make the shale oil industry face the pressure of high coast,the economic recoverable reserves decreases because of low shale oil breakeven,shale oil production falls in the future,shale oil drilling rigs will declines.For bad impact of low oil price of shale oil industry,the adopt strategies is recommended: shale oil companies develop the core areas with lower cost;compress the cost of the industry chain in various aspects,especially the drilling cost;usingthe hedging to avoid the risk of low oil prices;investing into high quality shale gas area to geta high profits.