Fed’s Logan Warns US Oil Production Won’t Fill Global Supply Gap

Federal Reserve Bank of Dallas President Lorie Logan sounded a warning signal that the world’s supply of oil and natural gas may start to dwindle if shipping through the Strait of Hormuz doesn’t return to normal soon.

Logan, whose district includes the Permian Basin — the world’s largest shale-oil field — said US production won’t be able to fill the gap in global oil supplies driven by the war in Iran. Capital, labor and other input constrains — combined with the physical limitations to piping natural gas out of West Texas fields — mean consumers may face a new reality ...