Oil prices had their worst day ever Monday plunging into negative territory. Now some Oklahoma oil producers are asking the state Corporation Commission to step in. The Oklahoma Energy Producers Alliance (OEPA) is asking the Corporation Commission to mandate oil stays in the ground, something that hasn’t been done in decades.
Oil Storage, including at the largest facility in the world in Cushing Oklahoma is now reaching capacity. A decrease in demand because of the coronavirus and an increase in supply due to a fight between Russia and Saudi Arabia means producers Monday would have had to essentially pay someone to take their oil.
“When some country or countries have an expressed purpose of putting us out of business we need help,” explained Dewey Bartlett, with the OEPA.
So, the OEPA has filed a petition with the Corporation Commission asking them to hold a hearing to determine economic waste is occurring and limit production.
“Who can justify such a negative price for such a valuable commodity as crude oil,” he argueed.
Bartlett said such foreign intervention in prices could put Oklahoma companies out of business and threatens our national security.
Some Texas oil producers are asking for the same thing.