• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 4 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 8 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 2 days Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 16 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 1 day "The Hidden Story About California's Container Ship Backlog" via Corbett Report
  • 2 hours NordStream2
  • 1 day Storage of gas cylinders
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Texas Oil Drillers Prepare To Halt Production

Texas oil companies may soon cut back production, both because of a looming lack of available storage space and because wells are becoming uneconomical at $20 per barrel WTI. 

Many regional grades are trading lower than that--approaching negative territory.

“Large-scale production interruptions appear inevitable and imminent,” according to Pioneer Natural Resources and Parsley Energy executives, who wrote to the Texas Railroad Commission asking the industry body to order a production cut, Reuters reports.

One commissioner, Ryan Sitton, already suggested cuts, possibly in partnership with OPEC, earlier this month, before the crisis really hit. Now, the cuts, with or without OPEC, seem inevitable, and the industry is eager to start cutting, calling on the regulator to effect the cuts beginning in May.

“We think it’s important to save this industry,” Reuters quoted Pioneer’s chief executive Scott Sheffield as saying, adding that he had suggested a production cut of as much as 20 percent, but excluding the smallest producers in the state.

There is a catch, however. According to Sitton, Texas will not resort to production cuts unless Saudi Arabia and Russia agree to the cut, too.

“I’m not advocating we do anything on our own,” the commissioner told Reuters. “If it is the right thing to keep some stability in the world, we can do it.”

Saudi Arabia and Russia don’t seem too enthusiastic about cuts, however. Saudi Arabia just yesterday announced plans to boost its oil exports to 10.6 million bpd in April and more than 10.8 million in May.

Meanwhile, pipeline operators in Texas are asking producers to stop pumping oil because storage space is filling up. The storage problem is becoming critical on a global scale. According to the chief analyst of data analytics firm Kayrros, if storage continues to fill up, oil prices could fall close to zero. This zero space available could happen in months, if not weeks.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News