Texas’ Oil and Gas Regulators Aren’t Ready to Cut Production Yet
Facing a steep drop in oil demand with much of the world staying home to practice social distancing, more than 55 energy executives, analysts and critics appeared one after another Tuesday at a video meeting of the Texas agency that regulates the oil and gas industry to weigh in on a request that the state’s oil production be cut.
Some oil producers asked the Texas Railroad Commission for such a cap. Others said regulators should not get involved in determining oil production, even during the novel coronavirus’ parallel public health and economic crises. And a few speakers who testified took a neutral position but provided their thoughts on industry matters anyway.
“If we are forced to prorate, we are going to cease all activity right away,” testified Kaes Van’t Hof, chief financial officer of Houston-based Diamondback Energy, a company that focuses primarily on the Permian Basin.
He said a move to cut oil production “directly impacts the employment of almost 3,000 people.”