Friday, December 07, 2018
Vanand Meliksetian | Oil Price | December 5, 2018
Every once in a while, a new technological development shakes up a conservative sector. In the oil and gas industry, the shale revolution has changed the business in multiple ways. The U.S. has been transformed from one of the world’s leading oil importers into the world’s largest producer of oil and gas. Fracking in the Permian basin has created bottlenecks as the existing infrastructure cannot cope with rising production. Producers are not able to get all the oil and gas to customers, creating a price differential with the WTI benchmark. On average, shale oil producers in the Permian basin receive $10 to $13 dollars less for each barrel compared to WTI levels.