RE:RE:Swing vs Short-Cycle ProductionImpega, the advantage of shale is that a lot of it is relatively shallow and can be drilled and left when the PoO is low and then brought on stream very quickly when the price improves. This is a strategy that is currently being used in the Texas EagleFord and is catching on right across the US. Remember, Hess's company bet against the Sauds cutting production by selling off all of their hedges before the Sauds cut. So, they lost on a grand scale. For Hess's company, I have no doubt that he is correct because they made a collosal mistake and are now forced to evade bankruptcy. So, ya, for them it will take years to get back up to speed. But for those shale producers who were on the ball and hdeged and had good balance sheets, they can come in and out in a heart beat and have many fields just waiting for the PoO to correct upwards. And when it does, they will do the same thing. The game has completely changed and the good US shale producres will flourish and respond to the PoO as supply and demand rise and fall.