The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, August 21, 2015. REUTERS/HEINZ-PETER BADER
For leading U.S. shale oil producers, $40 is the new $70.
Less than a year ago major shale firms were saying they needed oil above $60 a barrel to produce more; now some say they will settle for far less in deciding whether to crank up output after the worst oil price crash in a generation.
Their latest comments highlight the industry's remarkable resilience, but also serve as a warning to rivals and traders: a retreat in U.S. oil production that would help ease global oversupply and let prices recover may prove shorter than some may have expected.
Continental Resources Inc (CLR.N), led by billionaire wildcatter Harold Hamm, is prepared to increase capital spending if U.S. crude CLc1 reaches the low- to mid-$40s range, allowing it to boost 2017 production by more than 10 percent, chief financial official John Hart said last week.
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Update: Why OPEC is Losing Control Over Oil Prices & How Shale Oil Controls It Indirectly (Alahdal A. Hussein, Oil Voice)
WNU Editor: So much for the theory of "peak-oil".
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