Texas Oil Bodies Respond to Oil Price Crash



Texas Oil Bodies Respond to Oil Price Crash
The Texas Independent Producers & Royalty Owners Association and the Texas Oil & Gas Association have spoken to Rigzone following the latest oil price crash.

The Texas Independent Producers & Royalty Owners Association (TIPRO) and the Texas Oil & Gas Association (TXOGA) have spoken to Rigzone following the latest oil price crash.

In a comment sent to Rigzone via email, TIPRO’s President, Ed Longanecker, stated, “if the Saudis and Russia reach a compromise in the near term, which I believe will be the case, the impact will be minimal”.

“If not, current market challenges will be exacerbated, particularly for cash constrained operators,” he added.

Longanecker went on to say that the U.S. oil and natural gas industry remains “one of the most resilient sectors in the world” and claimed it will emerge “even stronger” but conceded that it may look “very different” than it does today.

Todd Staples, the president of TXOGA, told Rigzone that “Texas oil and natural gas companies have proven themselves nimble and innovative in challenging times”.

“Historically, when oil prices have been down, free market principles, science-based regulations and ingenuity helped Texas operators weather downturns,” he added.

“As oil and natural gas companies navigate the challenges of the marketplace, we need to be doing all that we can to maintain the stabilizing force that Texas has become for our state and the world,” Longanecker continued.

OPEC+ is going to war with U.S. shale, according to Sandhill Strategy co-founder Katie Bays, who expressed the view in a television interview with Bloomberg on Sunday.

The move is something the group has “avoided doing since they cut production in 2016”, Bays outlined in the interview.

Standard Chartered revealed Monday that it has lowered its 2020 average Brent oil price forecast by $29 per barrel to $35 per barrel.

The company, which believes the collapse of the OPEC+ agreement will lead to a “severe and extended price war”, lowered its second quarter Brent forecast by $38 per barrel to $23 per barrel and its 2021 forecast by $23 per barrel to $44 per barrel.

Jack Allardyce, an oil and gas research analyst at Cantor Fitzgerald Europe (CFE), outlined in a comment sent to Rigzone on Monday that oil prices will eventually rebound as current levels are below the marginal cost of production for the majority of operators.

TIPRO, which was founded in 1946, represents nearly 3,000 individuals and companies from the Texas oil and gas industry. The group was established by independent oil and natural gas producers hoping to provide a unified voice for the industry, according to its website.

TXOGA is a statewide trade association representing every facet of the Texas oil and gas industry, according to its website. Collectively, the membership of TXOGA produces in excess of 90 percent of Texas’ crude oil and natural gas, its website shows.

To contact the author, email andreas.exarheas@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Robert M Parisi  |  March 11, 2020
Both Russia and the KSA have more downside than Texas Shale operations which now includes Chevron + Exxon + Oxy. U.S. is much more resourceful than Russia & KSA. Texas producers proven resourceful.
Gene Cockrell  |  March 10, 2020
I think this low an oil price is unnatural economically. IMHO the price of WTI should be in the $55-62 range. Anything outside of this tests the resiliency of the markets and initiates a springback to these price levels eventually. It is a true shame that the oil industry has to experience these swings, both for the companies and for the employees who are likely to get canned.