Also, the cost to extract oil is higher in some regions and production will drop off as prices drop. Canadian sands oil and shale oil both cost about $40/ barre

Also, the cost to extract oil is higher in some regions and production will drop off as prices drop. Canadian sands oil and shale oil both cost about $40/ barrel to extract so there isn't a ton of room for prices to go down from here before big chunks of supply vanish.