US cuts shale oil production

Whiting Petroleum stated that it will suspend all of its fracking activity in order to spend 80% less this year. "We believe this conservative strategy should help us to maintain our liquidity position and leave us well positioned to capitalize on a rebound in oil prices," abc.az cited Whiting Petroleum CEO Jim Walker as saying.

The company's budget will be reduced to $160 million, which will be directed mostly at maintenance. Competitors also reduced their budgets for the year.

Observers agree that once oil prices rebound to the level of break-even shale prices ($40-50 per barrel), Whiting Petroleum and Continental Resources will immediately resume production to repeat the entire charade from scratch.