Texas won’t vote to proration oil production

Two of the three votes will be against it

The swing vote at the Texas Railroad Commission on oil production says that the state won’t be limiting crude pumping.

There will be a vote on May 5 but Energy Intel spoke with Wayne Christian and he revealed that the issue is dead.

It was revealed in the last meeting we had that two of us were not
ready to make a decision. The two of us [Christian and Commissioner
Christi Craddick] have now expressed our being opposed to proration. So I
think the issue is settled, and it disturbs me to still see it [viewed]
as a big question before the commission coming next week.

a disservice at a crucial time in the United States and in Texas, where
there is an industry that needs certainty. Unless there are
tremendously revealing new facts and serious new propositions, I
question why we are keeping it alive. But each commissioner can put on
the program that they desire, and [Sitton] has decided to present that
as a subject again.

This puts the US in a tough position if there are more calls for OPEC to cut production. They can point to Texas and elsewhere in the US and say that it needs to be a team effort.

In any case, companies are shutting in production. Now it’s a question of who can withstand the most pain.

The June crude futures contract expires May 19.

See here for global coronavirus case data

Articles You May Like

GBPUSD looks to complete the lap up and down. 100 hour MA looms below.
Germany reports 333 new coronavirus cases, another 11 deaths in latest update
USDJPY works toward the swing highs for the week (after trading to a new low)
ForexLive Americas FX news wrap: Trump goes easy on China

Leave a Reply

Your email address will not be published. Required fields are marked *