Swing vs Short-Cycle ProductionHess can call it whatever he wants, US shale being privately run and having short production runs are and will continue to be the most nimble producers in the market going forward and since OPEC and the Russians are not cutting production, US shale will be the sub-sector to respond to the ebbs and flows of supply and demand going forward. The thing that a lot of the market still has not seemed to have absorbed yet is that the Sauds are really NOT going to cut production. As they have stated for the past year and a half, cutting production is not in their best interest over the medium and especially the long run. But we still see price premiums being baked into the price of oil in anticipation that OPEC and the Russians are going to meet in March and somehow miraculously agree to cut production. This is not going to happen. This is going to be a long slog throughout 2016 to balance supply and demand. Watch what happens when the June OPEC meeting comes and goes and production is not cut. I suspect we will see more real weakness in the summer as the run up from the driving season comes off. Oil is in a lingering bear market and will roll along sideways for the remainder of 2016.