BRK discussion, page-1673

I do agree partly what you are saying.
Most of what I've read is indicating drill rig layoffs around 10 %.
Standard procedure in a down turn.
Brk doesn't have the high debt that an E and P has to keep up with declining wells and maintaining forward drilling wells to meet forecasts.
Also note you are generalising for the whole sector, there are plenty of companies with forward hedges at $55 with a break-even of approximately $30 per boe, inclusive of recovering acquisition costs, development costs, production costs, and all overhead costs. There debt maturities and when if not for 3 years will help as well. they should survive with reduced earnings and capital outlay, number of rigs operating etc, , which then pickup again when prices rise. With a down turn in price inefficient operators with poor hedging and badly structured debt get weeded out.
The problem the market has is the reduced earnings forecasts sends the price down.
BRk has some of the best land with short payback time in the industry, demand is reduced but how much for quality land ?
With oil forecast between 55 and 65 in 2019. The well run companies will be looking to replenish wells coming off line.
With breakevens ranging from USD29–43/bbl, Oklahoma’s SCOOP/STACK shale plays are living up to their reputation as the US’s hottest new area for horizontal development.