U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a sixth week in a row even as oil prices rebound from historic lows and some producers return to the wellhead.
Houston-based Occidental is considering reducing its stakes in oil and natural gas fields in Oman, according to the people, who asked not to be identified because the information is private. Its holdings in the Gulf sultanate could be valued at more than $1 billion, the people said.
U.S. crude output is set to fall by 670,000 bbl/d in 2020 to 11.56 million bbl/d, the U.S. Energy Information Administration (EIA) said on Tuesday, steeper than the 540,000 bbl/d decline it forecast previously as drillers have slashed activity.
Midland oilfield service company ProPetro plans to exercise a contract clause that obliges Irving oil company Pioneer Natural Resources to pay millions of dollars in fees for idling hydraulic fracturing fleets in the Permian Basin.
As demand for oil has plunged across the world, Texas oil regulators are not expected to impose cuts to production Tuesday, a move that has been discussed widely since the coronavirus began spreading in the United States.
Over the past several weeks, as we joined the rest of the country in doing what we can to stop community spread of the coronavirus, we’ve been dreading another crisis in the making. One that few outside of the oil-rich Permian Basin in West Texas noticed brewing. On April 20, it happened.
Oil and gas companies announced plans to cut more than 6,400 jobs on a grim day for the industry that saw the price of crude oil settle below $20 for the first time since 2001 and the amount of petroleum in U.S. storage rise by nearly 20 million barrels.
The Texas Railroad Commission held an online hearing all day Tuesday to consider cutting the state's oil and gas production. Nearly 60 industry leaders and market experts gave their testimonies for or against proration.
Houston-based Plains All American Pipeline has cut one-third of the company's capital expenditure budget as the oil and gas industry continues to feel the pressure of historically low prices and falling demand during the coronavirus pandemic.
Exxon Mobil Corp on Tuesday throttled back investment in shale, natural gas and deep water production, cutting planned capital spending by 30% this year as the coronavirus pandemic saps energy demand and oil prices tumble.
The U.S. rig count is down 64 rigs from the previous week to 664, with oil rigs down 62 to 562, gas rigs down two at 100, and miscellaneous rigs unchanged at two, according to current numbers from Baker Hughes.
President Trump is scheduled to meet with the CEO's of some of the biggest oil companies in the country to talk about measures to help the industry weather an unprecedented oil crash, people familiar with the matter said.
“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.
Apache Corp. is sending 85 Midland workers home in response to the oil crash. The company told state workforce officials layoffs began Wednesday and will continue through May 18, according to the Midland Reporter-Telegraph.
Tens of thousands of Texans are being laid off across the state in places like the Permian Basin shale fields in west Texas as companies shut down their drilling rigs, according to Ryan Sitton, a state oil and gas regulator.
"I am very concerned about the impact the international oil market instability has on the Texas economy, state budget, and the hundreds of thousands of Texans who rely on the oil and gas industry for a paycheck," said RRC Chairman Wayne Christian.
President Donald Trump has ordered the Department of Energy to purchase 77 million barrels of American-made crude oil to support U.S. oil producers who have hit hard times because of the coronavirus and turmoil in the international market.
“We are preparing for two years of low prices and will make the necessary adjustments to maintain our great balance sheet,” he told the Washington Post. But, added, “there will be many bankruptcies in our industries and tens of thousands of layoffs over the next 12 months.”
One of Texas’ oil and gas regulators on Tuesday defended the state’s high rate of natural gas flaring, but named companies that burn off the most gas and said he would hold public meetings on the controversial practice.