WASHINGTON (Pakistan Point News / Sputnik - 21st April, 2020) The Texas Railroad Commission has formed a task force to review the ways to aid the recovery of the state's oil industry, Chairman Wayne Christian said during a meeting on Tuesday.
"I'm excited to announce today the formation of a blue ribbon task force for oil economic recovery," Christian said. "I want to challenge the task force to look at every aspect of what can be done at the state level to assist operators and save jobs as we endure these historic circumstances... anything else the task force can think of that will aid the industry in managing through difficult times."
Christian noted the task force may look into possible tax relief or relaxing certain regulations to help the oil industry's recovery.
Commissioner Ryan Sitton pushed having a final vote on oil production cuts in Texas in response to the poor market conditions caused by novel coronavirus (COVID-19) pandemic. Sitton proposed cutting oil production by 20 percent starting on June 1 if another 4 million barrels per day is cut by producers in other US states as well as Canadian and OPEC-plus producers.
However, Commissioner Christi Craddick said any final decision will likely end up in court. She suggested that the Commission consult options with its legal team and seek further consultation with Texas Attorney General Ken Paxton to ensure any action taken on proration is on solid legal grounds.
The COVID-19 crisis has shattered the demand for oil in the United States, with much of the nation subject to stay-at-home orders and roads nearly devoid of traffic. That, combined with a failure of the OPEC+ talks in April to reduce output, has produced an unprecedented glut that exceeds the storage capacity in many countries.
