Texas Oil Companies Are Preparing to Stop Production

With slowing demand and dropping oil prices, Texas oil production could grind to a halt.

As the World is in quarantine, the demand for oil has slowed down. It is now nearly more costly to operate oil wells than it would be to temporarily close them due to the devastatingly low price of oil at $20 per barrel.

Storage space is also a factor for the potential halt in oil production, as too much oil has been produced without an equal amount of consumption.

According to CBS7, Executives at Parsley Energy wrote to the Texas Railroad Commission and stated:

"Large-scale production interruptions appear inevitable and imminent,"

The oil prices are also dropping due to a price war between Saudi Arabia and Russia, which inevitably hurts Texas oil producers.

4,245 views0 comments