HAVE YOU HUGGED A FRACKER TODAY? Plunging oil prices ‘could go even lower for even longer’

Falling prices could temporarily constrict the rapid growth of U.S. oil production, but energy industry experts don’t expect a significant pullback. American oil producers cut costs during the last downturn spanning from late 2014 to early 2016, which keeps them profitable even at lower oil prices that might have previously shut down wells.

The possibility of what the energy industry calls a “lower-for-longer” scenario is gaining ground. It could accelerate the auto industry’s transition from fuel-efficient cars to thirstier sport-utility vehicles and give Americans unexpected savings in their summer travel budgets, while also raising the prospect of energy worker layoffs if prices dip further.

The price of West Texas Intermediate, the U.S. benchmark crude, dipped below $43 per barrel in afternoon trading Tuesday, a level not seen since last August. It settled at $43.23, down 97 cents on the day.

Less than a month ago, oil was trading above $50 and experts were projecting prices of $60 to $70 later this year. That now looks unlikely.

“We had no idea it would be this low for this long,” said Patrick DeHaan, a petroleum analyst at GasBuddy.com. “It could go even lower for even longer.”

The key takeaway here is that innovative American frackers are learning to prosper at $45 and under, while otherwise-useless petrostates see their gravy trains start coming off the tracks at anything much under $60.