The big oil boom of recent years has finally produced a big drop in prices, which looks more like a long term readjustment than a quick market swing.
Although the oil boom may have run its course for now, they can continue to profitably produce at these higher levels.
Natural gas in the US has already run its boom, until plentiful supply lowered prices, and started slowing its growth rate.
In both cases, improved technologies have permanently improved productivity, lowering the break-even price points. In both cases, the US has huge supplies which could be produced.
Natural gas is gearing up for another (although less explosive) growth spurt next year, as huge export facilities start coming on line. It takes a few years to get these built, but 2016-18 will see a sharp rise in export capability, as these projects are already, approved, funded and well underway.
US natural gas prices are well below world prices - less than half what many countries pay. We can keep pumping more gas into the world market, until prices worldwide adjust down to our levels (domestic prices will rise a bit as well for a while).
Although the boomtown rush of huge wages and huge premium prices for oilfield service suppliers may come back down to more competitive rates, production will continue at higher rates in the long term, pumping money into our economy and taxes into the public treasury.
It is a long term major good news story for the USA and the world.
I know some of the engineering/design firms in Houston that serve the upstream and midstream oil industry have had lay-offs up to 50% of the company already.
Not all of them, but several at least.
“The big oil boom of recent years has finally produced a big drop in prices, which looks more like a long term readjustment than a quick market swing.”
I think those who try to predict what will be happening on forecasts are dreaming.
Take a look at what the predictions were in 1981 on oil price, and what they turned out to be.
http://www.kaldor.no/energy/lecture20090312-oilprice.html