Unlike other petroleum formations, the nature of shale — with multiple inexpensive, short-lived wells — means producers can stop and start drilling on a dime. On the one hand, this allows them to quickly cut costs in a downturn; on the other, every time prices tick up, so will their output — renewing downward pressure on prices.

Source: www.bloomberg.com

 "Unlike other petroleum formations, the nature of shale — with multiple inexpensive, short-lived wells — means producers can stop and start drilling on a dime. On the one hand, this allows them to quickly cut costs in a downturn; on the other, every time prices tick up, so will their output — renewing downward pressure on prices."

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