Resilience
Column Published in syndication September 25, 2019

Earlier this month, oil facilities in Saudi Arabia were attacked, knocking a large portion of production (about 5% of the world's daily supply) offline. However, rather than a market-roiling, global crisis, the result was a modest increase in oil prices. A decade or so ago, the scenario would have been totally different and, back in 1973, a smaller reduction precipitated an eight-year "energy crisis," complete with gasoline lines, oil export bans, 55-mile-per-hour speed limits, turning our thermostats down, and daylight savings time. The reason? The recent revolution in US oil production and, in particular, the surge now going on in the Permian Basin, where about two-thirds of incremental domestic output is occurring.