"An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel. OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day."
Overall global commodity prices are impacted by countless local production costs. A large shift in how business is done in one place (in this example, Texas’ Permian Basin) can have reverberating impacts on the local productions of other places that focus on that same global commodity (OPEC).
GeoEd Tags: energy, resources, economic, political ecology.
Scoop.it Tags: energy, resources, economic, political ecology.
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