This is ECON 101. This is the way the market works. Higher prices and not government intervention will bring producers back into the market. My advice to workers who may be heading back to North Dakota—rent, don’t buy. My advice to everyone—don’t ever believe the conventional BS about “market failure.” In success or failure, the market is working perfectly.
OPEC has a real competitor now. Shale production will continue to get cheaper. If OPEC wants to manipulate the price, US shale production will counter it.
The profitability threshold will vary by shale producer, but all thresholds seem to be well below the Saudi budget threshold of over $100 a barrel.