[cgpcraig]

This is how the economics of all resource extraction works, not just oil. As prices rise and fall the economic viability of extracting a particular resource pocket changes. It's all in equilibrium and prices typically don't move as much as oil has in the last three months because market forces and people generally don't want to shoot themselves in the foot. The long term economics of Russia and KSA crashing the price so they get a monopoly doesn't make sense, doing so minimizes their profit if done over the long term since capital costs per barrel are fixed. Resource investments are multi-decade, the overall effect of this is going to be a blip in the grand scheme of things rather than an end to the industry.