The report suggests that the resilience of US shale oil production to price collapse is beginning to fade. OPEC producers, particularly Saudi Arabia, have hoped to drive down longer-term US production through an extended period of acutely low prices. Falling US output could help rebalance the oil market in the second half of the year and potentially vindicate OPEC's supply-side strategy.
The US oilfield services sector will be hit particularly hard, as drilling activity plunges and upstream companies push for lower costs.
The US economy as whole should benefit from lower oil prices, but undiversified oil states will struggle.
Increased shale bankruptcies, particularly among smaller producers, will provide commercial opportunities for legal services firms.
