The Saudis increased production first. The others followed to make up for lost revenue.
The Saudis are trying to pressure their mortal enemy Iran - not put the US shale oil industry out of business.
Most of the cost of shale oil is already sunk. Once you have the land, done the exploration and drilled the wells the cost of extraction is negligible. The shale producers can simply stop further drilling and sell whatever oil the have at a profit. Individual producers may suffer but the shale industry is safe.
www.forbes.com/sites/timworstall/2014/12/13/oils-heading-for-40-for-shale-oil-is-a-free-market-and-opecs-a-cartel/
The reality is that Saudis will blink first because they need >$60bbl to balance their budget.
Santos Worthless, page-63
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