Best not buy into the current round of putting lipstick on a pig by the main stream media, shale oil pundits, cheerleaders and shale oil companies themselves; at $53 WTI nobody makes ENOUGH money to keep drilling wells to maintain a RRR of 100% and pay down debt at the same time. Its not possible. Shale oil basins are still getting gassy and well productivity has plateaued or going down. Sweet spots are drilled up and now its on to the secondary stuff. Think Halliburton and H&P will want to keep losing money servicing the US shale oil sector? Nah. This current administration will cause regulatory compliance costs to go up and demand for oil to go down, down more than the COVID crisis has already caused. The rest of the world can bring on 8MM BOPD of additional crude oil production at the drop of a hat if and when it needs to. Oil prices will correct, down, just as fast as they went up.
If you get a case of the Seeking Alphees and think you may actually want to jump in and buy some shale oil stock, stop what you are doing immediately, put a cold wash rag on your forehead, take 4 Advil and a double scotch and email me first thing in the morning. Your better off burying your money in the backyard with the dog bones.
Long term, oil might have some appeal to investors again, but not through shale oil. Those shale guys need $80-90 oil to pay all that debt back now. If I am wrong why haven't they already paid it down? Think they "like" owing more than they are worth and having a credit rating of BBB? Or paying $450MM bucks a year in interest is cool?