Here are 10 things you need to know about oil and gas today, for March 31, 2020:</strong>
The Government Won’t Help a Divided Oil and Gas Industry Divisions in the oil and gas industry itself make any kind of government solution to the oil price bust very difficult to attain.
Texas shale producers ask state to cut oil output as demand plummets during coronavirus pandemic. The above piece notwithstanding, independent producers are still trying to make their case to the Railroad Commission.
Trump talks oil prices with Putin as rout continues – While the industry fights among itself, the President is conducting high-level talks with leaders in Russia and Saudi Arabia.
<a href=”https://www.cnbc.com/2020/03/30/cruz-warns-saudis-to-stop-using-oil-in-economic-warfare-against-us.html”>Ted Cruz, other senators, warn Saudis to stop using oil in ‘economic warfare’ against the US</a> – Excerpt from the piece:
Sen. Ted Cruz told CNBC on Monday he and eight other GOP senators recently ripped into the Saudi ambassador in a conference call over the oil price war with Russia that has threatened to put American producers out of business.
In an interview, Cruz said the call with Princess Reema bint Bandar bin Sultan bin Abdulaziz Al Saud was “as candid a call, and direct a call, as I’ve ever had with a foreign leader.”
“We quite frankly unloaded on her,” the Texas Republican said.
EPA Issues Waiver to Avert Potential Summer Fuel Shortage</a> – Good move here by the Trump Administration to waive a costly policy with marginal benefit in a time of crisis.
As Texas economy sputters, will rainy day fund rescue state government?
Unemployment numbers mount; restaurants and retail stores are shuttered; and oil prices remain in the cellar, down by two-thirds since January. With sales and other consumption taxes making up the lion’s share of state general revenues, a $3 billion budget surplus projected by Hegar last year has evaporated.
“The rainy day fund is a tremendous asset in Texas’ fight against this virus,” Hegar, the state’s chief accountant, told the American-Statesman. “While we do not yet know what the full extent of the health care-related needs will be, we do know that the economic toll will be significant.”
The fossil fuel industry scored a win Friday after a federal judge upheld the Trump administration’s rescission of an Obama-era rule governing oil and gas extraction on public lands. U.S. District Court for the District of Northern California Judge Haywood Gilliam said states and environmental groups had not shown that the repeal of the 2015 hydraulic fracturing rule had or would result in harm, since the rule had not yet gone into effect.</h5>
Oil and natural gas companies across the Lower 48 and abroad, themselves facing uncertainty due to an ongoing price war, have launched major relief efforts in their communities amid the coronavirus pandemic. In addition to utilities that have announced plans to halt disconnects and waive fees for customers, Duke Energy is taking extra care of its employees. The company contributed $100,000 to its Relief4Employees program, which gives one-time grants to employees experiencing financial hardship. Duke also is offering five additional personal days for employees whose dependent care is disrupted. Some employees also may be eligible for a $1,500 stipend to assist with unplanned expenses like emergency childcare.
Natural Gas Prices Could Double Next Year – The operational word in this oddly optimistic piece is “could”. Don’t bet the farm on it actually happening.
Pipeline operators ask oil companies to stop production as storage fills up
A new problem attributed to the coronavirus pandemic is slowly brewing out in the oil patch.Pipeline operators with full storage tanks are asking some Texas oil companies to stop production as the ongoing price war between Russia and Saudi Arabia has exacerbated a global supply while the pandemic has dramatically cut global demand.
Saturday morning tweet</a>, Texas Railroad Commissioner Ryan Sitton, one of three officials elected to oversee the state agency that regulates the oil and gas industry, reported that some oil companies are getting letters from shippers asking for production cuts because they are out of storage.
That’s all for today.