Texas oil regulator weighs 20% production cuts against ‘free market’ opposition

摘要

Houston—Texas energy regulators began debating Tuesday whether the state should impose 20% crude oil output cuts on producers to help stabilize prices amid the global coronavirus pandemic. The issue is under consideration after OPEC+ agreed to cut production by nearly 10 million b/d, although that’s still far short of at least 20 million b/d of expected global demand destruction. With Texas producing close to 5 million b/d of crude, a 20% reduction would remove roughly 1 million b/d, but opponents said the state should let the free markets work to trigger organic reductions.