Saudi Arabia Oil US: cut costs or go out of business

World's most powerful oil brought a strong message to Houston for executives hope for a bailout of low prices: high-cost producers - many of them sitting in the room - either "lower costs, borrow cash or liquidate. "

For thousands of executives attending the conference IHS CERAWeek, the message of the oil minister of Saudi Arabia, Ali al-Naimi, it means deeper spending cuts, laying off more thugs and idling rigs.

"It sounds hard, and unfortunately it is, but it is the most effective way to rebalance the market," Naimi told the audience in Houston on Tuesday.

No less than 74 US producers face major difficulties in maintaining debt, according to credit rating firm Moody 's Investors. explorers shale from Texas to North Dakota will be "decimated" in the coming months amid a wave of restructurings and bankruptcies, said Mark Pope, former CEO of EOG Resources Inc. who helped create the industry shale more than one of each. The survivors will be more conservative father, who is now a partner of the private equity firm Riverstone Holdings LLC, he said Tuesday during a panel discussion.

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