OPEC’s efforts at shutting down US shale and Canadian tar sands operators would make great sense if the technical reality of North American oil production supports it. It doesn’t. The sad reality for any production-based moves by the cartel to regulate prices is that OPEC doesn’t have as much leverage as it thinks it has. The problem? Production realities. Sure, OPEC’s current policies might cause the shutdown of many shale oil operators. In fact, shale field permits are tanking along with the total number of rigs in operation in the United States. However, once the price of oil starts to spike up, shale operations can spring up once again just like mushrooms after a hard rain. Technically speaking, these operations are very resilient and can be restarted in a relatively short period of time. Prices will then start to trend down again.