U.S. shale’s response to OPEC’s decision to cut supply and boost prices: We’ll take it, but we don’t need it.
In 2014, the U.S. oil industry’s fate seemed to rest in the hands of OPEC ministers who were flooding the market with cheap oil in a push to obliterate them. Now, the cartel is in full retreat, agreeing to cut output to keep their own economies healthy even as U.S. production continues to surge.
The move came in a week in which oil fell to near $50 a barrel, a price that four years ago would have panicked U.S. drillers. But since then, shale explorers have cut costs, boosted fracking efficiency and made wells longer and more productive.
The result: Break evens for a 30 percent profit have been almost halved to just $45 a barrel in the prolific Permian Basin. Read More
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