Permian oil explorers expand activity as drilling costs decline
The picture is chequered but the trend is clear. Some shale drillers can live on pretty low prices and some cannot seem to make it even when the price climbs up to 70. Is that a bad thing? Not at all. It’s natural that in a broad trend like shale there are all kinds of players and all kinds of reservoirs. Those that can not seem to make it will have to go out of business in order to concentrate acreage, money, and services on the performers. Its a cleaning process that must be allowed to run its course and there will be those that lose their shirts. But in the overall picture, this will be insignificant.
Oil explorers deployed more rigs for the first time in four weeks as shrinking drilling costs outweighed concern about sliding crude prices.
