Oklahoma’s governor has called on U.S. President Donald Trump to announce the coronavirus pandemic an”act of God,” a measure to assist oil-producing states compete using a primitive glut that triggered futures costs to close below $0 final week for the very first time.
“Over-production of petroleum proceeds to undermine the market,” Governor J. Kevin Stitt stated in a letter to Trump that Stitt submitted on Twitter late on Saturday.
Declaring a”force majeure” or”act of God” will enable oil companies to stop operations without realizing that property rents will probably be canceled for quitting production, Stitt said.
Oklahoma’s energy regulator said on Wednesday that manufacturers could shut money-losing wells without sacrificing their rents, the initial victory for fighting U.S. oil firms seeking relief from nations following the market crash.
U.S. production attained a record-high of about 13 million barrels every day late last year, however, the pandemic has significantly cut worldwide intake by 20% to 30 percent, or around 30 million BPD.