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Opinion
Liam Denning

The Apparently Never-Ending Permian Blowout

If shale’s problems are temporary, nobody told the oil market.

Permian shale oil prices aren’t exactly over the moon.

Permian shale oil prices aren’t exactly over the moon.

Photographer: Bloomberg/Bloomberg

Energy dominance carries its own backlash, it turns out. Ground zero is the Permian basin in west Texas, where oil production has run ahead of pipeline capacity to get it to market, forcing some U.S. barrels to price at wide discounts. Thankfully, new pipelines should fix the problem by early 2020.

Apparently, though, the futures market is less convinced about that last bit.