- Oklahoma’s energy regulator on Wednesday ruled in favor of an oil company’s request to consider unprofitable production an economic waste, marking the first victory among companies looking for state relief against low prices.
Crude supplies have overwhelmed global demand, which has fallen more than 30% due to the coronavirus outbreak that limited business openings and travel. This week, U.S. crude futures traded negative for the first time in history, and on Wednesday were around $14.60 a barrel. Texas and Oklahoma can curb oil production to prevent waste of the states’ natural resources. Both used economic waste to impose restraints decades ago.
On Tuesday, Texas energy regulators put off voting on a proposal to cut the no. 1 oil-producing state’s production by 20%, or 1 million barrels per day. In North Dakota, home of the second-largest U.S. shale field, regulators on Tuesday agreed to weigh financial aid to its oil industry.
So what happened to the free market ? Or pull yourself up by your bootstraps ? Merica isn’t winning so much now is it 😂