Oil is barely at USD 50. That was considered a dead zone not long ago, and now they bring the rigs back at such levels. No matter what price level one might consider healthy for shale oil, it most definitely is lower now than just 2 years ago and at that pace and cost, it outclasses many conventional producers. Especially when they put their political cost on top. Producers such as Saudi Aramco are a cash dispenser for the Saudi state. Take it away, and the whole country runs into massive troubles. If shale just works on slim margins, the US economy won’t suffer.
Baker Hughes reported another gain this week in the the total number of rotary drilling rigs operating in the United States.