Can Shale Withstand a Drop in Oil Prices?

Can Shale Withstand a Drop in Oil Prices?

NATIONAL JOURNAL 12/01/14
By Clare Foran

WHAT INSIDERS ARE SAYING

How far will prices have to drop for U.S. production to be significantly curtailed? Which drilling operations will start to feel the sting first? And how are companies with major investments in shale likely to respond? Does Washington have any place in the price free fall, or will the market take care of shale? Read the question at the Energy and Environment Experts discussion.

“This illustrates the profound uncertainty and unsustainable nature of shale exploration. This is a boom about to go bust. A smart energy policy cannot be dependent upon cartels controlling market price. A more sustainable price point, economically and environmentally, involves an energy portfolio that profits off readily available renewable resources that cartels can’t control.” —Michael Shank, director of media strategy, Climate Nexus