This is an interesting chart. It shows the dramatic increase in U.S. shale oil production (rig count) and following that, the rapid decline in rig count once oil prices crashed due to oversupply.
Tough times since late 2014 for anyone making a living in the oil industry. (I personally know people in my little central Canadian city who have lost jobs as a result -- suppliers of equipment to Alberta and the U.S.)
The big question is: what is the time delay between the drop in rigs and the inevitable drop in production?
(From:
Oil Jumps As US Rig Count Plunges Most Since April | Zero Hedge)
It seems to be about a 1.5 year lag
on the way up.
Once extraction of "expensive oil" starts to fall (not just in the U.S., but in every country that produces expensive oil) and stockpiles begin to be drawn down, prices will shoot up again.
Which ties to solarguy's question: what is the time delay between prices going back up and drilling re-commencing?
Boom & bust, baby.