👉 The dip-in curve, also known as the dip-and-recovery cycle, describes the pattern observed in the oil and gas industry where oil prices experience a significant decline (the "dip") followed by a rapid rebound (the "recovery"). This cycle begins when a well's production drops sharply due to factors like reservoir depletion, pressure loss, or equipment failure. As producers attempt to recover remaining oil, prices often drop further as the market adjusts to the reduced supply. Eventually, new discoveries or increased production capacity can push prices back above previous levels, marking the start of a recovery phase. This dynamic reflects the balance between supply and demand in the energy market.
