It's very capital intensive so you need higher prices to incentivize more capacity and supply. So if priceses fall, they won't be incentivized, which means supply falls until prices rise enough to incentize them to bring on more supply. More supply -> prices fall and there you have the cycle. More or less.

He is very a very "If, then" type of thinker so I don't want to put words in his mouth but I think he thinks oils going back up to $150 if/when oil rolls over.