This article presents information in regards to four major contributions. First, it
presents information in regards to the investigation to the extent to which the U.S. fracking boom has affected Arab oil
exports to decrease since late 2008. Second, the article presents the information in regards to calculating for the
first time by how much the U.S. fracking boom has lowered the global price of
oil. Using an specific type of methodology called "novel econometric methodology", it is shown that in mid-2014, for
example, the Brent price of crude oil was lower by $10 than it would have been
in the absence of the fracking boom. Thirdly, the article provides evidence that
the decline in Saudi net foreign assets between mid-2014 and August 2015 would
have been reduced by 27% in the absence of the fracking boom. Finally, the
article concludes with the policy choices faced by Saudi Arabia and other Arab oil
producers.
