Low prices are forcing domestic shale-oil drillers to cut drilling programs, but production is unlikely to slow in the short term, according to a Wall Street Journal report.
Instead, energy companies will concentrate on lower-cost formations in Texas -- the Permian and Eagle Ford -- while relying on hedges to protect revenue.
Goodrich Petroleum Corp., which focuses on the Tuscaloosa Marine Shale in Louisiana and Mississippi, has locked in a price of $96 per barrel for a big chunk of its 2015 production.
President Robert Turner told the Journal the company will live within its means until oil prices recover.
Houston-based Goodrich has more than 300,000 acres under lease in the Tuscaloosa.
Wells in the still-developing Tuscaloosa cost more, and drillers are still perfecting the approach that yields consistently high production. The formation and companies like Goodrich have been hit hardest by the drop in oil prices.
After OPEC failed to lower production quotas Thursday, Goodrich shares fell 34 percent to $6.05 on Friday. Goodrich's shares have dropped more than 75 percent since June, when the price of oil began to slide.