The price to oil producers in the Permian has collapsed compared to WTI… Here is Alison Sider and Ryan Dezember of the Wall Street Journal:
”In the epicenter of America’s drilling boom, crude is going for less than $60 a barrel because oil output there has overwhelmed pipelines that connect the Texas desert to markets along the Gulf Coast and abroad.
U.S. oil prices are splintering because of bottlenecks in the region due to crowded pipelines and worker shortages. Analysts and investors worry such logjams will threaten the profits of Permian producers and slow crude output when the global oil market is already facing limited supplies because of disruptions from Iran and Venezuela. That would propel rising oil prices even higher.”