Interview: US Oil Reacts Quicker to Price, but Remains Far from Swing Producer
View on S&P Global Platts website"The projection reflects that US oil production can respond much faster to rising prices than it has in the past, but it remains far from achieving swing producer status, Richard Newell, president of nonprofit Resources for the Future, said in an interview Tuesday. In a study for the National Bureau of Economic Research, Newell found that US drillers are now nine times more responsive to price since the adoption of unconventional drilling. 'I would not have guessed that the magnitude of the difference was quite as dramatic as we found,' Newell said, adding that an earlier study found natural gas drillers were three times as responsive to price. 'I thought that sounded like a lot,' he said. 'When we did oil and it's even more dramatic, that surprised me.'"
