Oklahoma energy regulators OK move allowing well shut-ins

Oklahoma

FILE – In this June 11, 2019, photo a pump jack operates in an oil field in the Permian Basin in Texas. The world may be heading into an oversupply of oil, and that possibility is hanging over members of the OPEC cartel, which will meet later this week to decide whether to further cut production to boost prices. (Jacob Ford/Odessa American via AP, File)

OKLAHOMA CITY (AP) — The Oklahoma Corporation Commission has approved an emergency order that allows oil producers to stop or reduce production without losing their leases for non-production.

The three-member panel that regulates the oil and gas industry in Oklahoma issued its emergency order Wednesday amid a crash in the price of oil.

The per-barrel price has plummeted as demand dried up and an oversupply has led to limited storage capacity.

One Oklahoma producer who testified that he operates about 600 wells in the state said he is currently losing $200,000 per month by producing economically challenged wells.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Video Forecast

More Forecast

Don't Miss