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Indeed, a lot of the discussion here among world oil leaders attending the IHS CERAWeek conference is about how the “turning point” under way today will reshape the sector, reset assumptions and expectations, and create new ones.

“The full parametres of this world remain to be determined,” Tillerson said. “In many ways, [it] means working together as we have never worked together before.”

US$50 oil is a new opportunity to re-discuss how industry is spending money and to come back to efficiency

For example, he said it remains to be seen how tight oil will respond to low oil prices and reduced level of investment because “we have been in nothing but a growing environment.”

Ryan Lance, chairman and CEO of U.S. independent ConocoPhillips, believes producers’ ability to respond quickly to price signals — whether prices are high or low — will result in a lot more price volatility.

“If US$80 or US$90 [a barrel] is coming back, there is a good chance that US$50 and US$60 is coming back as well,” Lance said.

Bob Dudley, group chief executive at British oil major BP PLC, said the world has changed from one that had grown accustomed to US$100 a barrel oil to one that is awash in it, which “makes us very cautious about making an assumption of a quick rebound.”

The new environment means a transfer of wealth of about US$1.6 trillion from energy producers to energy consumers, Dudley said, forcing producers to push down their costs.

“The cost structure of the industry is off,” he said. “The oil and gas industry made the same returns at US$10 a barrel as at US$100 a barrel. So it needs to make changes to get us back into balance.”