At that price point, you won't see the young frackers drill nearly as aggressively as they were, but production will definitely increase.

The caveat to all of this is that the Saudis could decide they didn't like the crash and what it did to their reserves and so they may start tinkering with world prices again in the future by curbing production. However, what te Saudis have liked about this slowdown is that (a) it's put a huge strain on frackers in the U.S. And has helped the Saudis maintain (or increase) their market share, and (b) lower oil prices for a little while will extend the life of world reliance on oil as lower oil prices make alternative energy sources less attractive. Alt energy relies on expensive oil to convince people to invest in alternative energy.