Goal: $40 Oil

U.S. shale producers say that $40 is the new $70, referring to the fact that less than a year ago $70 was considered essential for future operation. Comments from producers at last week’s meeting in Houston show the “industry's remarkable resilience.” Harold Hamm, Continental Resources announced that he will increase capital spending if U.S. crude gets to the low-mid $40’s, with plans to boost 2017 production by 10%. Jim Volker, CEO of Whiting Petroleum, the largest Bakken producer plans to stop fracking new wells by the end of March, but would "consider completing some of these wells" if oil reached $40 to $45 a barrel. Hess Corporation, another big Bakken producer, demonstrated shale producers’ ability to cope with low oil prices by reducing the cost of new wells by 28% in 2015.