Remember, Permian and eagle ford have lower cost structures than Bakken/3forkes. Layoffs are real in the Bakken. I can't believe how quickly things turned so bearish. Part of the situation includes oil producers that are forced to produce simply to keep their economy rolling - like Russia and Venezuela and even the Saudies.
Some smart guys are suggesting the oil deflation will ignite deflation throughout the economy. But the fed can't let that happen - governments want inflation to reduce their debts. Deflation would be good, but the fed will roll out qe4 to avoid deflation. qe4 will bury the $$$. Gold is up, why is gold up when oil is down?