Hardly true since we have used hydraulic fracturing since the 1940s. We didn't start producing those shale fields at those prices. There isn't going to be shutting down wells at $50. The major expenses are already spent putting the well into service. We won't drill as many new wells at $50 as we did at $100. And oil well reduce production over time, shale wells drop rather fast the first few years.
I haven't seen average wellhead pricing for oil. I have only seen that chart for Natural Gas. Some of the major US types of oil are priced at:
And what’s the life span of the newly frack’d deposits? 18mo, 24mo.? At $60 are they seriously going to gamble on moving the pipes around when so many people who entered at $100/barrel have just gone bust? Who’s going to lend to them at that point (seen all the articles about the the amount of leverage out there in oil plays?).
Thanks. You’re a real gem.