Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 11

Figure shows the annual rate of crude oil extraction of the United States was basically unchanged 2002-2012. Not so for Saudi Arabia whose production increased 33%. Explain why with special attention to the price spike in mid-2008.
FIGURE Oil Price 1970-2012 and Drilling Rig with Horizontal Drilling