In 2014, OPEC began flooding the global marketplace with oil in an attempt to depress prices to counter competition, largely from fracking. Oil prices fell from $105 per barrel in June 2014 to only $29.04 per barrel in January 2016.
But, OPEC’s strategy backfired. According to the International Energy Agency (IEA), OPEC’s artificially low oil prices succeeded only in making fracking companies “leaner and more efficient.” In fact, oil production here at home remained relatively constant.
Now, OPEC has announced it will be cutting production, sending the price soaring to $52.04 per barrel, illustrating why we need to decrease our dependence on imported oil and increase U.S. production.