Source: EOG Resources Presentation [The picture up above highlights how EOG's plan to defer completion on some of its wells, so the oil and gas producer can capitalize on higher prices in the future, could substantially bolster its drilling economics] West Texas Intermediate, or WTI, is the benchmark for light American crude and is often used as the benchmark for North American crude prices while Brent is used as the benchmark for international crude. Since falling to $43 a barrel just a few months ago, WTI has rebounded sharply up to over $60 a barrel. As of this writing, WTI was sitting at $60.46 a barrel. Investors should definitely take note of how this will impact the current "over-supply" in the market and how the rebound will help solve some of the outspend problems almost every upstream player is facing right now [especially independent, shale-focused upstream operators]. EOG Resources (NYSE:EOG) stated that it would resume "double-digit" production growth once WTI reaches and holds $65, which it isn't that far off from doing. While EOG Resources is one, if not the lowest cost shale producers in America, others may follow suit at a slightly higher price. This could lead to additional supply hitting the market and cause WTI and Brent to fall down somewhat. However, WTI will probably have to rise up to at least $65 - $70 a barrel before America's oil production begins growing on a daily basis again as shale operators put their rigs back to work. On the plus side, EOG Resources plans on balancing its cash flow with its capex over the next few quarters if WTI stays around current levels due to reductions in its third-party costs, a reduction in capex, lower well drilling and completion costs, more productive wells, and higher realized prices. EOG is the biggest crude producer in the prolific Eagle Ford shale play down in Texas and holds the largest acreage position in the region. In the event WTI continues its climb back up, EOG Resources is well positioned to ride the wave up due to its strong balance sheet [$2.1 billion in cash, $2 billion untapped credit line, $4.8 billion in net debt as of March 31, 2015] and its recent guidance that its outspend would come under control relatively soon for solid, believable reasons. Even if WTI falls back down, EOG Resources' strong financials and drilling economics will help pad its cash flow streams while it waits longer for a recovery. So far, it looks like WTI has stabilized around $60 a barrel, painting a much brighter future for shale players like EOG than when WTI was in free-fall towards $40 a barrel. Disclosure: The author, Callum Turcan, does not own a position in any of the companies mentioned above. Always do your own due diligence before investing.