April 22, 2020

Today, the Railroad Commission of Texas (RRC) continued discussion on the issue of proration, ongoing relief initiatives of the agency, and the formation of a Blue Ribbon Task Force for oil economic recovery.

Chairman Christian kicked off the discussion by inviting RRC Executive Director Wei Wang to discuss the various relief and flexibility initiatives that the agency has provided to our state’s oil and gas operators, including deadline extensions for certain requirements/filings, online processing and electronic submissions, and enforcement discretions and waiver considerations. You can view the discussion here (34:30-40:03). A full list of our notice to operators can be found here.

Next Chairman Christian announced the formation of the Blue Ribbon Task Force for Oil Economic Recovery. This task force is being led by the leadership of our state’s major trade associations including the Texas Oil and Gas Association, The Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners Association, The Permian Basin Petroleum Association, The Panhandle Producers and Royalty Owners Association, and the Texas Pipeline Association. If you would like to join and offer your input, please reach out to: toberbeck@txoga.org…..
 

April 22, 2020

US crude inventories were up by 15 million barrels last week, now up to 518.6 million, a near-record high, according to the Energy Information Administration…..
 

April 21, 2020

Following the historic Monday 306% decline in WTI based on May contracts, June contracts on Tuesday settled on the day at its lowest in 21 years, according to analysts….
 

Turnout at drive-through virus testing centers are somewhat sparse…Half a million job openings are available in Texas…Details about “opening up” Texas on the way

April 21, 2020

Governor Greg Abbott said he’s been in contact regularly for “the past several weeks” with the White House about what to do about the huge oil downturn that’s have a significant effect on Texas……
 

April 21, 2020

President Trump says he’s told his administration staffers to “make funds available” to oil companies in the midst of the current demand crisis…..
 

By Alex Mills

April 20, 2020

“Oil ain’t pork bellies.” That was a comment made during the debate in the early 1980s regarding the decline in crude oil prices and the implementation of futures trading of crude oil. The point he was trying to make is crude oil is not just a commodity, but it is a strategic commodity that has economic, military and social values.

It is such a valuable strategic commodity that governments around world have tried to manage, manipulate and fondle oil production and consumption for almost 100 years.

In 1930, a fellow by the name of “Dad” Joiner drilled a well in East Texas that started an oil boom that lasted for about 40 years. The news spread quickly and a flood of oil erupted just as the nation was coming out of the Great Depression of 1929. It created an oversupply which caused a sharp decline in price to as low as a nickel a barrel.

The Railroad Commission, which originally regulated the transportation of agriculture products by rail and later crude oil, was assigned the duty to restore order and prevent waste of this precious natural resource. What resulted was the adoption of a prorationing rule, which allocated a reduction of production for each well. The RRC encountered many problems including lack of enforcement, cheating by rogue producers, and legal defeats. The governor had to call in the National Guard and Texas Rangers at one point……
 

April 20, 2020

Tapstone Energy says its comprehensive financial restructuring plan has been completed and the company is raising $50 million in new equity just as the bottom drops out of WTI…..
 

April 20, 2020

In an act legally related to Texas oil companies’ requests for proration, an Oklahoma administrative law judge has been working on a recommendation to the state’s oil and gas regulator, allowing a declaration that oil production could constitute “economic waste.”….
 

April 20, 2020

April 20, 2020

Range Resources has a deal with Pennsylvania officials for regulation violations, according to authorities…..
 

April 20, 2020

Healthcare researchers are saying they need as much computing power as possible to work out scenarios and mathematical reasoning to help find solutions to problems created by the COVID-19 pandemic, and BP says it’s contributing “significant capability” to help the effort through its Center for High-Performance Computing (CHPC) at Houston……
 

April 20, 2020

Yuma Energy is filing for Chapter 11 bankruptcy in a Texas court….
 

April 20, 2020

Empire Petroleum says it’s acquiring through a subsidiary some producing O&G assets and some related midstream properties in Houston, Madison and Leon counties…..
 

April 20, 2020

Oncor, Cheniere, Reliant Energy, ExxonMobil, Motiva and Atmos Energy continue to make donations to help those most affected by the COVID-19 pandemic……
 

April 20, 2020

The Railroad Commission of Texas issued a total of 744 original drilling permits in March 2020 compared to 1,137 in March 2019. The March 2020 total includes 671 permits to drill new oil or gas wells, six to re-enter plugged well bores and 56 for re-completions of existing well bores.
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April 20, 2020

Yesterday, Railroad Commission Chairman Wayne Christian joined Kelly Evans on CNBC’s The Exchange to discuss the agency’s virtual meeting on proration and his thoughts on various efforts to stabilize the worldwide market for crude oil. You can view the interview here……
 

April 20, 2020

Texas Governor Governor Greg Abbott on Friday announced the Governor’s Strike Force to Open Texas and appointed Texas Oil & Gas Association (TXOGA) President Todd Staples as a Leader of the Energy Working Group. The Governor’s Strike Force to Open Texas will help to safely and strategically restart and revitalize all aspects of the Lone Star State — work, school, entertainment, and culture. The Strike Force and its Working Groups will provide input on potential additional openings of activities and services in Texas consistent with guidelines provided by the Centers for Disease Control and Prevention. The Governor will announce a revised plan for the state based on these initial recommendations on April 27…..
 

April 20, 2020

“Today’s market activity was unprecedented and likely indicative of very limited storage capacity. May contracts traded well into negative territory as the market prepares to shift focus to June contracts. While down somewhat, June contracts traded in a relatively stable range. While this unprecedented volatility is concerning, the greater impact to Texas will come if demand remains historically low for a prolonged period of time and supply gluts continue to strain storage capacity…..
 

Storage is all leased up…So blame the oil ETF, USO maybe — it’s outlived its usefulness if it ever even had any…”This is temporary but it will be rough for a little while” — Texas representative

April 20, 2020

US oil stocks are just now settling for the day as investors watched oil prices plummet as the afternoon wore on, with WTI dropping below $0 per barrel to as far as -$37.63 a barrel before a little price recovery began…….