BusinessWeek: Oil prices might have further to fall
A story in BusinessWeek highlights a Goldman Sachs report from this week hinting that U.S. drillers might want to let up a bit, in the face of still-plummeting worldwide prices.
The shale boom in the U.S. isn’t likely to pull back until oil gets so cheap that people can’t make money drilling for it. There are a lot of estimates of the break-even price for U.S. shale producers. Some think it’s around $80 a barrel, others think it’s closer to $60, and it’s obviously not going to be the same for everyone. The number changes depending on where you’re drilling and how good you are.