US tight oil production is now a significant enough contributor to global supply that it could provide a strong floor to the oil price. This is because US industry dynamics are relatively short term and operators are able to react quite quickly to prices, with a similar impact on production. This price support is important as Wood Mackenzie calculates that, if the oil price fell below US$80/bbl, around 3.5 million b/d of production from new field developments worldwide could be at risk.
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Insight | Feb 2014
Cost trends of new oil supply and oil price implications
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