The US shale oil industry will be able to maintain flat output if oil prices stay at $50 per barrel, according to the chief executive of Hess Corp.
John Hess said a price of between $60 and $80 per barrel will be needed to invest in long cycle projects such as deep-water.
He said: “Because of operational efficiencies and productivity the industry needs $50 per barrel to hold shale production flat… Our company and others have reduced drilling time from rig to rig from 30 days two years ago to 15 days.”
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