RE:Dennis gartmanyes, you gotta love how some of these analysts have no clue about real world economics. They say that the U.S. is now the swing producer because of the vast production from the Bakken. The most recent articles I have read indicate that the all-in cost for U.S. tight oil plays varies between $60 and $80 per barrel, depending on the formation.
What happens if the price drops into the $60s for any sustained period of time?
They stop drilling and within a year, U.S. production will have declined by about 3 million barrels per day, resulting in a huge gobal deficit.
Also, the U.S. energy industry (the only engine of growth for the U.S. economy) goes from boom to bust and thousands of high paying jobs disappear, along with the goods and services that support the sector.
Consumers will save a few hundred bucks a year on gasoline and buy more goods from ChinaMart.