Here are 10 things you need to know about oil and gas for April 3, 2020:
In states like Texas, North Dakota, Oklahoma, Wyoming and New Mexico, which together are producing the preponderance of U.S. crude oil, regulatory bodies possess various authorities to limit production within their state borders. Those states combined to produce about 68% of the oil produced in the U.S. in January, the latest month for which the U.S. Energy Information has data. Another 15% was produced in federally-owned waters in the Gulf of Mexico and off the Pacific coast.
Thus, at least in theory, roughly 83% of U.S. oil production could be artificially limited by the federal government and state regulators on a coordinated basis. It is important to note that this kind of coordination is the only real way for the U.S. to become a meaningful part of any such deal.
OPINION: Texas, oil industry will get through pandemic – An op/ed from Texas Railroad Commissioner Christi Craddick.
OPINION: Cross the line and fight for the Permian Basin – An op/ed from Permian Basin Petroleum Association President Ben Shepperd.
Thank you, to President Donald Trump for going to bat for the Permian Basin.
We don’t know what the long-term impact will be of your conversation with Crown Prince Mohammed Bin Salman, but if the Saudis and Russians cut oil production by about 10 million barrels, that would be a big win for the region.
President Trump, you didn’t have to do this. In fact, it might have been easier for you politically to not be seen as aligned with oil at this time. A vast majority of the country doesn’t know – and probably doesn’t care – what the energy revolution in the Permian has done for America. It has made the country safer, less dependent on people who don’t like us and brought down the costs of energy, while providing tens of thousands of high-paying jobs in regions such as the Permian.
Executives from Irving-based Exxon Mobil and other top energy companies met Friday with President Donald Trump to discuss the devastating drop in oil prices caused by the coronavirus pandemic and a price war between Saudi Arabia and Russia.
With energy states like Texas facing severe pain, Trump vowed that “we’ll get our energy business back.”
“I’m with you 1,000%,” he told the gathered round table during the portion of the meeting seen by the press. “It’s a great business. It’s a very vital business and, honestly, you’ve been very fair. You’ve kept energy prices reasonable for a long period of time.”
Trump’s oil meeting: The aftermath, details and drama – Excerpt: President Trump, who met last week at the White House with oil company executives and lawmakers, said over the weekend he’d wield tariffs if needed to protect the oil industry, which is reeling from a global glut in supply. “If I have to do tariffs on oil coming from outside, or if I have to do something to protect thousands and tens of thousands of energy workers and our great companies that produce all these jobs, I’ll do whatever I have to do,” Trump said at a Saturday White House briefing, warning that low prices “are going to hurt a lot of jobs.” A day earlier, however, Trump suggested he was unlikely to impose tariffs, which are fiercely opposed by the big oil companies, which want little government intervention.
While record low oil prices are costing the vast majority of companies money on every barrel they produce, the natural gas sector is optimistic that 2020 could turn out to be a pretty good year. In short, all of the problems plaguing the oil industry — including a sharp drop in fuel demand and OPEC countries flooding the market with oil — could mean higher prices for natural gas.
Much of the natural gas to hit the market in the U.S. is produced from oil wells. Companies pull oil from the ground, but some natural gas comes up with it. As many oil companies are now cutting back on oil production, there will likely be much less natural gas on the market. That could mean higher prices.
Texas would agree to oil production curbs if U.S. President Donald Trump reached an agreement with international producers on cutbacks, a state energy regulator said on Friday in remarks that drew push back from fellow commissioners.
Ryan Sitton, one of three members of the Texas Railroad Commission, which regulates oil and gas production in the state, said in an interview on CNBC that any production cuts would be temporary. There is no need for a long-term deal, he said.
However, the state’s other commissioners, Christi Craddick and Wayne Christian, took to Twitter to say that they had not yet made up their minds on the matter and would wait until an April 14 hearing to decide on any cuts.
Louisiana Sens. Bill Cassidy, John Kennedy urge oil and gas relief from President Trump – Texas’s congressional delegation is not the only one looking for the federal government to help the oil and gas industry.
Russia, OPEC want to bankrupt US industry. Here’s what to expect next – Very good and incisive op/ed from Texas Republican Congressman Mike Burgess.
That’s all for today.