Here are 10 Things You Should Know About Oil and Gas Today:
The Big Story
The Texas Railroad Commission met again on Tuesday to consider the proposal raised by Pioneer Natural Resources and Parsley Energy to use its authority to limit oil production from Texas wells. While Commissioner Ryan Sitton expressed his desire to move forward, both Wayne Christian and Christi Craddick were reluctant to do so.
While the Commissioners did agree to take the matter up for consideration one more time at their next meeting on May 5, the rapid destruction of the oil markets likely means that that would be too late for any intervention on their part to make any real difference. If they were going to act, the time to have done so would have been immediately after their historic hearing on April 7.
Texas shale producers struggling to survive this dramatic downturn in crude prices should turn their efforts to seek help to other venues.
Here are links to a couple of good stories about Tuesday’s hearing from two excellent energy reporters, Sergio Chapa and Jennifer Hiller:
On to other news:
It’s time for the Texas Railroad Commission to curb flaring to prevent waste, protect property rights [Opinion] – Op/ed by Scott Anderson at EDF
Analysis: Energy isn’t the whole Texas economy, but it’s a critical piece – Good analysis piece from Ross Ramsey at the Texas Tribune
A sweeping court ruling last week that halted construction of the Keystone XL pipeline through waterways set off alarm bells for some energy industry analysts. Experts warned that the U.S. District Court for the District of Montana’s broad order withdrawing a nationwide Clean Water Act permit for the crude oil project connecting Canada’s oil sands to the Gulf of Mexico could also affect a pair of East Coast natural gas pipelines and an oil sands conduit between Canada and Wisconsin. “This is a big deal,” said Christi Tezak, managing director of ClearView Energy Partners LLC.
President Trump said yesterday that the “biggest thing in the tool box” for an oil industry reeling from an unprecedented price collapse would be reopening the country, as Treasury Secretary Steven Mnuchin suggested Congress may need to provide more money. “That’s where the engine is, more important than any other thing that we can work on,” Trump said at a White House briefing on the novel coronavirus pandemic that has closed much of the country. He has said he’d like to see parts of the nation open by May 1, and some governors are making plans. Appearing with Trump, Mnuchin said the oil and gas industry likely does not qualify for aid under a $17 billion provision in the stimulus package that Congress has authorized for companies critical to national security, including major defense suppliers.
Oil Price Rout to Hit U.S. Regional Economies – Strong analysis showing how important oil and gas is to many regional economies.
Oil price collapse expected to impact Texas more than any other state – Well, given that Texas produces 1/3rd of all the oil and gas produced by the entire country, that would make sense.
Louisiana faces major budget shortfall as oil markets crash – The Bayou State’s economy is going to suffer big damage as well.
The industry’s focus on limiting emissions has helped lower combined methane emissions from oil and natural gas systems 23.2% since 1990, according to data released recently from the Environmental Protection Agency. During this same time frame, natural gas production has increased 50%.
Despite the increased development, independent studies have shown no impact to water quality or quantity in Pennsylvania streams and state forests. In fact, “Marcellus-produced waters are not influencing stream chemistry,” a recent Department of Environmental Protection-funded study concluded.
That’s all for today.