Why Putin may be disappointed
a significant part of the cost for frackers is in land acquisition. Except for those who have already restructured, that's a sunk, but ongoing cost as part of their debt burden and burned cash.
Sure, rig count will go down for a while but majors and other better heeled outfits will just come in and buy the better assets at distressed prices. Depending on the quality of the play and the extent of development, most don't cover variable cost at $30. But oil will go back up to $50 and above they'll be right back at it.
It will, however, probably cut a percent or more off US GDP for a couple of quarters or more.
He must be rooting for Bernie.