The oil market is featured in a New York Times article that highlights the years-long tug-of-war between the Organization of the Petroleum Exporting Countries (OPEC) - which has attempted one failed tactic after another to conquer the oil glut that is expected to suppress prices for at least another year - and companies continuing to tap into shale reserves across the U.S., driving oversupply and low prices.
U.S. oil production, which averaged 8.9 million barrels a day in 2016, is expected to rise to 9.3 million barrels a day this year. Some of that production can be attributed to companies operating in the Permian Basin of West Texas, which the New York Times describes as a layer cake of shale strands that make wells cheaper to drill.
All of this is good news for consumers as the summer driving season approaches – a time when oil and gas prices should be rising, but are instead falling and will likely continue to fall as oil inventories remain high across the globe.