Texas oil workers start stopping oil production

April 14 2020 20

The American company Texland Petroleum preserved, until the beginning of May 2020, all of its 1211 wells in Texas, which produce 7 thousand barrels of oil per day and completely stopped production due to lack of demand. This was reported to the newspaper The Wall Street Journal by company director Jim Wilkes.

We have never done this before. We always managed to sell oil even at a bad price.

- said Wilks.

Wilkes noted that the company has now applied to the Texas Railroad Commission (RCC) for permission to receive financial assistance in support of small and medium-sized enterprises affected by the COVID-19 pandemic. The company needs money to pay salaries to all its 73 employees.

However, not all US oil companies can temporarily stop oil production. Since the US Department of Energy is already negotiating with nine such companies about storing their 23 million barrels of oil in storage at the US Strategic Petroleum Reserve.

At the same time, Chevron, ExxonMobil and Continental resources announced a 20-30% reduction in oil production. At the same time, the RCC regulator is already considering the appeal of several companies and conducting hearings.

Earlier, RCC spokesman Ryan Seatton said that under the law, excessive oil production can be considered a violation and should be regulated. Therefore, the regulator is in favor of reducing production.

The COVID-19 pandemic has led to a drop in global oil demand and a serious drop in prices. After which the countries began to agree on a reduction in oil production.

I must add that before this, the American company Whiting Petroleum, engaged in the development of oil fields in North Dakota, filed a bankruptcy protection application. We remind you that from May 1, 2020 will begin a new OPEC + deal is in effect and some time in the world it will be extracted by almost 10 million barrels of oil per day less. This will help relieve overflowing storages and normalize the situation on the world market.

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123

+5

April 14 2020 21: 08

You are lying. It can not be. Marzhetsky said that everything was lost, Putin under the baseboard, Trump on a white camel, the Saudis of the Order of the Sutulov hang on his back.
1. Nick
  
  +4
  
  April 14 2020 21: 40
  
  Quote: 123
  You are lying. It can not be Marzhetsky said that everything was lost, Putin under the baseboard, Trump on a white camel, the Saudis of the Order of the Sutulov hang on his back.
  
  I don’t think that one of the sane people takes seriously the articles of this analyte, well, except for the regular all-breed people feeding on this site. Yes, and those by job. Yours faithfully,
2. monman
  
  +4
  
  April 14 2020 21: 54
  
  Now the price of oil on the Amer Stock Exchange is $ 20.14. On the Russian stock exchange $ 29.7
  Not to fat, as they say, for the Russian economy ...
  1. 123
    
    +2
    
    April 14 2020 22: 31
    
    Now everyone is not having fun. The economy is in a stupor, oil oversupply.
    These "messengers of peremogi" just got it with their fairy tales.
    1. monman
      
      +1
      
      April 15 2020 00: 26
      
      I have fun! Gasoline 93 (the best, there are 87,89) costs $ 2.30 for 4 liters. A couple of months ago, $ 2.90 - $ 3.10. And the cheapest (87) now costs $ 1.70 for 4 liters.
      1. 123
        
        -1
        
        April 15 2020 01: 08
        
        Have fun on health, take a moment.
        As for the prices, I counted it, it turns out that the 93rd with our money costs 42 rubles per liter, our 92nd costs 44 rubles per liter.
        
        https://admhmansy.ru/benz-price/
        
        The difference is small, but taxes are included in our price. The most expensive AI-100 for 52 rubles per liter can be poured, $ 2,84 for 4 liters in your opinion.
        
        Arkharov
        
        0
        
        April 15 2020 07: 25
        
        And you did not compare salaries in dollars? Usually all propagandists, starting from the Soviet ones, for some reason forget to do this?
      2. Arkharov
        
        0
        
        April 15 2020 07: 23
        
        Probably cheaper in our country too? I haven’t refueled for a long time, I need to check, at least be glad for something.
bonifacius

0

April 14 2020 22: 38

Explain, if there are people here who are close to oil production, how can this be - "all of its 1211 wells in Texas, which produce 7 barrels of oil per day." It turns out that one well produces 5,78 barrels of oil per day?
1. Astronaut
  
  0
  
  April 14 2020 23: 25
  
  The author, you see, got the numbers wrong, even in Russia debits below 3 tons / day (22 bar / day) are considered unprofitable.
2. Arkharov
  
  0
  
  April 15 2020 07: 21
  
  This is absolutely normal. Such is the quality of the articles here.
Sergey Latyshev

0

April 14 2020 23: 30

It happens. 7 thousand barrels of oil per day ??? This, this ..... 1/200 from something there.
Alexander Semenov

+1

April 14 2020 23: 44

7 thousand are produced by one well; they have about 3 million per year.
Bakht

+1

April 15 2020 06: 20

And what helped to reduce production by 10 million barrels per day?
Arkharov

0

April 15 2020 07: 20

..preserved, until beginning of May 2020..

- So what? No one else was expecting. But in other countries do not preserve? Only here they don’t really like to mention it?
Sergey Latyshev

+3

April 15 2020 09: 10

But they wrote on VO, gasoline fell in price in USA. And it will get cheaper.
Something Neukropny about our gasoline did not have time to write anything joyful. Waiting for.
Marzhecki

+2

April 15 2020 15: 27

Quote: 123
You are lying. It can not be. Marzhetsky said that everything was lost, Putin under the baseboard, Trump on a white camel, the Saudis of the Order of the Sutulov hang on his back.

I do not quite understand why you are happy? And what is the contradiction with what I wrote about?
They temporarily reduced production, then they will increase again. There are no restrictions on quotas in the United States. In Russia, Russia has reduced production by volumes 5 times more than the United States. Why are you happy?
1. boriz
  
  0
  
  April 16 2020 11: 05
  
  This is unlikely to build up. The growth of unemployment in the USA has just begun (although it has already reached records, more than 6 million applications for the labor exchange, in my opinion, in 2 weeks). Very quickly disappear, like a class, a layer of people who, for large salaries, were engaged in garbage. Sales volumes of live oil are 20 times less (in terms of money) of sales volumes of futures and other derivatives. But someone issued these papers, traded. And all this went to the vaunted US GDP. Very soon, this GDP will look like my cat, Dusya, after she is washed. Only the difference will be much greater and without prospects again to fluff. In other papers, the difference is even greater. I saw data that the volume of real sales per year of real goods and services is $ 130-140 billion, and the papers wrapped in them are 2 quadrillion.
  This can be seen, at least for the same oil. In the United States, almost all oil goes to domestic consumption, 83%. For export - 17%. Moreover, oil in GDP is 1%, and in export - 12,5%.
  And people who were involved in the production and sale / resale of this waste paper, in obtaining loans to the public (who had long turned into a bubble and soon this bubble will burst loudly), received good salaries. And these are millions of jobs. And how many people around them were fed? Those who fed them, in restaurants and through expensive shops, who made and sold them expensive cars, refueled them, serviced and repaired. He built houses for them, organized beautiful vacations in other countries (in general, the tourist industry, to which we are all accustomed, will die before our very eyes). Produced and sold expensive household appliances .... All these people will also be left without work. And this process has just begun.
  I wrote here repeatedly (and was spat and zapomusnovy) that the United States and the countries with the largest trade turnover with the United States will be the worst. I repeat this one more time. It will be easier for us. Or maybe even the economy will rise. Like in the early 1930s.
  Farmers are already pouring milk down the drain. They cry: "I can't turn off the cow, I have to milk it." But soon they will "turn off", they will slaughter and put the meat in the freezer, they will eat, on the sly. They will not die of hunger. If the unemployed guys do not come with spontaneous surplus appropriation and do not "requisition". As in Austria and the USSR in the region of 1918 - 1920.
  So, on the roads of the United States there will be less cars than on the roads of the USSR (whoever didn’t see or remember, look at the old photos, funny). And the conservation of wells will become massive and drag on for decades.
2. boriz
  
  -2
  
  April 16 2020 11: 59
  
  And about "5 times", where does the data come from? And do they include gas condensate?
Marzhecki

-2

April 15 2020 15: 28

Quote: Nick
I don’t think that one of the sane people takes seriously the articles of this analyte, well, except for the regular all-breed people feeding on this site. Yes, and those by job. Yours faithfully

Yes, my articles are not for people like you. You need to explain something, it's like peas against the wall ...
Without respect.