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The Oklahoma Energy Producers Alliance, along with other small producers, last week formally asked the Oklahoma Corporation Commission, which regulates the state’s oil and gas industry, to consider that low oil prices had made current production a waste of the state’s resources.
U.S. crude futures were trading around $20.75 a barrel on Tuesday, off more than 60% from the start of the year as the coronavirus pandemic eroded demand. Tuesday’s price fell about 8% despite a deal this week by major producers to curb global output.
Texas regulators on Tuesday heard similar arguments from dozens of oil producers, pipeline companies and others. Shale producers Pioneer Natural Resources (NYSE:PXD) and Parsley Energy proposed a 20% cut, drawing opposition from large oil companies including Exxon Mobil (NYSE:XOM) and Occidental Petroleum Corp (NYSE:OXY).
