In less than a decade US oil companies drilled 114000 oil rigs in Western part of Texas. Many of them will be profitable even when market price falls as low as $30 per barrel. This will be a nightmare for OPEC.

Next year producers in the region are planning to eliminate bottleneck in transportation infrastructure and add three pipelines as well as 2 million barrels of oil per day.

This will challenge Saudi Arabia and OPEC. If they reduce output next year, then their market share will go to US producers, which learned how to survive with low prices.

In August US output showed the largest annual growth in 98 years by about 3 million barrels. Total production of 15,9 million barrels was higher than in Russia or Saudi Arabia. After new pipelines start operating another output spike is expected at the second half of 2019. The only restriction is capacity of ports that shall send oil for export.

By the end of 2019 oil output in the US will grow to 17,4 million barrels per day. Net import will fall to 320000 barrels per day, the lowest level since 1949. Besides, it is expected that the US might become net exporter of oil first time in 75 years.