The Wall Street Journal writes that the so-called "shale band" theory is being tested:
"The return of oil prices to about $50 a barrel presents a test for an idea that gained currency early after the market’s long swoon began two years ago: the “shale band.”
"The term was coined back in May of 2015 by Olivier Jakob, managing director of Petromatrix, a consultancy based in Switzerland. Mr. Jakob said U.S. oil production trends would be determined by two price points—$45 a barrel, below which oil produced from shale formations would drop off, and $65 a barrel, above which there would be 'massive [shale] production coming online.'
"In between was the shale band, a range where shale supply would be basically steady, according to Mr. Jakob’s theory."
Read the whole story here.