Rigzone posted an article today touching on some of the data surrounding U.S. shale producers’ ability to remain above water even through the days of $26/barrel oil. Although OPEC kept pumping in oil to an already oversupplied economy in an effort to knock some players out of the game, U.S. producers have held on impressively.
According to the Rigzone article, “so far no U.S. producer that pumps more than 100,000 barrels per day (bpd) has gone bankrupt”, and the agility of these big producers has kept U.S. oil production slipping “only about 10 percent since peaking at 9.69 million bpd”.
With recent oil prices rising to ~$50/barrel and hovering there, Rigzone contends some players in the oil industry are starting to cautiously think more about slow growth than simply keeping their heads above water. Some are even “moving ahead in the Bakken, Eagle Ford and Permian, considered the cheapest and most-prolific U.S. shale oil fields.”
But, many oil industry professionals are hesitant to view the oil price getting to $50 as relevant, and want to make sure we start seeing some sort of price stability before possibly stepping into quicksand.