Permian

The American oil market continues to be run by people with zero vision or forethought.
The price of oil in depressed by the Arabs and Russia having a pissing contest over market share. That has been going on for years and is showing no sign of abating. As long as they go at it, there will be a global surplus that will spook the markets into keeping the price down. The US shale fields have mostly become unprofitable at these prices. Dozens of companies have filed for bankruptcy, costing banks billions. But some companies are holding on, and even squeaking out small profits at the Permian basin in Texas. You would think that the companies still in the mix would be laying low, waiting for the market to balance itself out and the price to creep up to where a healthy profit can again be made. We know that oil has to rise in price. We are running out. New finds are not even close to meeting current demand. And existing fields are becoming more expensive to extract from.
Nope. More and more companies are flooding into Texas to bust their humps for a nickel. The latest is Blackstone Group who is investing $1.5 billion into the Permian fields. To MAYBE make five dollars a barrel. When your costs are fixed at $40 a barrel, why rush in? Oil WILL go up in price, and your costs remain flat. Producing a year from now will greatly increase profits. I just don't get it.