Canary CEO Dan Eberhart said the Organisation of Petroleum Exporting Countries' decision at its widely watched meeting in Vienna to continue current production levels of 30 million barrels a day was not only a direct stab at the US oil industry but would have wide-ranging implications for other OPEC members.
Led by Saudi Arabia, OPEC's Arab Gulf state members had "disregarded pleas from the organisations more penurious members" to stabilise dropping oil prices by reducing oil production.
While Eberhart said OPEC's decision was no surprise, he said the US ban on exporting its "highly sought-after, light, low-sulphur crude oil" was "not helping matters".
"Exporting US crude would add more supply to the world, which would help stabilise the price with constant demand," he said.
Eberhart's comments come two weeks before a House of Representatives panel is to hold a December 11 hearing to explore whether the US's nearly 40-year-old law banning crude oil exports makes sense with domestic energy in such abundance.
Energy Information Administration chief Adam Sieminski will testify at the hearing.
Reuters reported last week that the House subcommittee on energy and power, chaired by Representative Ed Whitfield, would hone in on the 1975 Energy Policy and Conservation Act - drafted in response to the 1973 oil crisis - which banned the export of most crude oil and created the Strategic Petroleum Reserve and Corporate Average Fuel Economy rules for cars and trucks, also known as CAFE standards.
The US shale energy boom has propelled US oil production to its highest levels in decades, dramatically decreasing America's demand for imports.
And while OPEC had historically taken the lead in stabilising the global market by adjusting production levels as necessary, Eberhart said Gulf State members with the resources to ride out a period of low oil prices were now capitalising on the opportunity to dampen the American shale boom.
"By holding fast to current production levels, Saudi Arabia is essentially saying that we need to put a wet blanket on American shale," he said.
"American shale plays with higher production costs, such as the Bakken in North Dakota, will be affected more. Weaker or over-leveraged American oilfield companies most likely will struggle - and may even be forced to close.
"American shale oil producers will definitely feel the far-reaching effects of OPEC's decision to keep its oil output at robust levels."
However, the impacts don't stop there. Eberhart said the Arab Gulf State members' refusal to yield represents "economic hardships for cash-strapped, oil-dependent countries that rely on higher oil prices for government revenue".
"The likelihood of a continued free-fall in oil prices will make it more difficult for US shale oil producers to fund new drilling projects, pursue exploration and in some cases - simply continue operations," he said.
Slowing economies in Europe and China have cut global demand even further, resulting in significant global oversupply and steadily dropping prices.
Eberhart said oil states like Nigeria and Venezuela would likely be forced to devalue their currencies as oil revenue continues to falter.
