Texas sets meeting on oil and gas production cuts

Argus Media:
Texas regulators will likely hold a meeting on 14 April to discuss curtailing the state's crude production in an effort to help balance the market in the wake of the crash in crude prices and a drop in demand because of the coronavirus pandemic.

Regulators are "working toward" a 14 April "open meeting" which would include producers who are in favor and against the move, economists, statisticians, regulators and other exports to discuss how it might be done, said Texas Railroad Commission member Ryan Sitton in an online presentation today.

If the commission and industry come up with "a recipe that looks good," it could happen fairly quickly, he said. Regulators could vote on implementing a production cut as soon as 21 April.

Such a move would be the first time Texas has limited production in decades.

Sitton presented new models which showed that the world is oversupplied by 18mn b/d of crude and will run out of storage in 72 days unless things change.

He also said that Texas has been having informal discussions with other states that are also considering limits in production. Sitton also floated the idea that pro-rationing could be tied to disaster declarations and would end once a crisis is over.
...
The production cuts would be based on an agreement with all the producing states.  I suspect that these cuts could also  be a factor in getting OPEC and Russian to bow to current market conditions and restrict their own production.

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