Just need to make more cars and sell some of out refined crude to our stab-in-the back Euro weenies.
I run a wireline truck and am currently on a frac location in the Eagle ford. The numbers being thrown around for breakeven in the eagle ford is $55 a barrel. That is with the current pricing structures for service companies already in place. I see a lot of waste and areas these producers can and will cut to streamline effeciency. Some companies with high debt companies wont fair so well and will be bought out or go bust. That will create pricing pressure on service companies that frac, wireline, or any of the other number of service companies needed to drill and complete a well and their price will go down. The larger players like EOG, or Marathon will get their price per barrel down even further and will do just fine even at a lower profit
margin. Some service companies like schlumberger and haliburton will use this as an opportunity to shake out a lot of the independent service companies and they will get through this with a larger marker share. Shale oil isn’t going anywhere even if we go through a hard couple of years. As for Saudi Arabia, well they can piss off. American ingenuity created the shale revolution in this country and American ingenuity is going to see it continue.