No mandated oil cuts for Texas, regulators say
Texas energy regulators on Tuesday said they will not mandate oil production cuts, ending a month-long debate about whether or not they would wade into global oil politics for the first time in 50 years as oil prices crater to historic lows.
Global energy demand has tumbled amid coronavirus-related travel and business restrictions and a glut of oil from shale. U.S. crude prices collapsed to minus $37 a barrel on April 20. Even with recent increases in U.S. oil futures to $24, local prices are still below the cost of production for some oil companies.
The turmoil prompted State Railroad Commissioner Ryan Sitton last month to push the idea after Parsley Energy and Pioneer Natural Resources asked regulators to mandate 20% curtailments, or 1 million barrels.
