The logo for Schlumberger appears above a trading post on the floor of the New York Stock Exchange.
The price of Texas oil remains low as the COVID-19 pandemic continues to depress demand. Add to that, an international price dispute earlier this year that led to an oversupply. More than many places, Houston is feeling the brunt of the downturn. Follow our weekly updates here.
Updated 11:20 a.m. CT Sept. 1
Houston-based oilfield services giant Schlumberger says it will sell its hydraulic fracturing business to another Texas company. In exchange for the frac business, Schlumberger will get a 37% stake in Liberty Oilfield Services. The deal is expected to close later this year.
This year's historically low prices combined with the glut in oil continue to hurt oilfield services companies. Schlumberger also announced plans to trim its global workforce back in July.
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Updated 3:05 p.m. CT Aug. 20
Houston-based Occidental Petroleum will sell some of its land grant assets in the Mountain West in an effort to chip away at its more than $30 million in long-term debt. Reuters reports a bulk of that debt was acquired last year when Occidental bought Anadarko Petroleum in a $38 billion deal.
Orion Mine Assets will pay about $1.3 billion for the land assets in Colorado, Utah, and Wyoming, according to Occidental. The sale is expected to close later this year, and will include 4.5 million mineral acres.
"This transaction significantly advances the progress against our $2 billion plus divestiture target for 2020," Oxy President and CEO Vicki Hollub said in a statement.
While the entire oil and gas industry is feeling the pressure from the 2020 oil bust, companies that explore for and produce oil and natural gas, like Oxy, are especially hurting. So are companies carrying a high amount of debt—debt that was acquired with the hopes that oil would trade at $60 a barrel or more through this year.
Instead West Texas Crude continues to sit between $40 and $43 per barrel.
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Updated 2:10 p.m. CT Aug. 20
Contango Oil and Gas has reported a $28 million loss for the second quarter. The independent energy company based in Houston says its capital budget will be "very limited" for the rest of the year, and "will be focused primarily on preserving our financial liquidity and flexibility and identifying opportunities for cost efficiencies in all areas of our operations."
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Updated 3:25 p.m. CT Aug. 12
Exploration and production company Southwestern Energy announced today it will acquire Montage Resources in an all-stock deal. The merger means the Spring-based independent will grow its presence in natural gas-rich parts of Appalachia by more than 300,000 acres.
More mergers are expected as companies try to survive the oil price crash. Already companies have slashed budgets, laid off and furloughed workers, and sold assets. Recently Reuters reported that Exxon Mobil will stop contributing to employee retirement savings funds in October.
Also this week, Houston-based exploration and production company Occidental Petroleum reported a second quarter loss of more than $8 billion.
Upstream companies have been among the hardest hit in the oil crash, as have companies carrying high amounts of debt. Just over a year ago, Occidental bought Anadarko Petroleum and took on about $40 billion in debt, hoping for high oil prices moving forward. Instead they plunged to historic lows, and many experts predict prices will stay around $40 per barrel for the rest of the year.
Houston oil and gas services companies continue to see multi-million dollar losses as well. For the second quarter Superior Energy reported a loss of more than $65 million, and midstream services company Exterran Corp. lost about $31 million.
Houston independent oil and gas company Goodrich also posted a $15 million loss this week.
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Updated 9 a.m. CT Aug. 10
More than 59,000 Texas oilfield services jobs have vanished in the pandemic.
Overall, more than 9,300 jobs were lost in July in the oilfield services sector, up from about 6,500 lost in June. Oilfield services companies, like Halliburton, have already posted losses this year in the millions and billions of dollars.
Additionally, a PESA analysis of Small Business Administration data found that loans from the Paycheck Protection Program have supported approximately 180,000 oilfield services jobs.
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Updated 10:45 a.m. CT Aug. 7
Another Houston energy giant is recording millions in losses for the second quarter. EOG Resources says it lost more than $900 million after it recorded a $10 million profit earlier this year. The company says in response to historically low oil prices it cut back production by 27% compared with the second quarter of 2019.
Exploration and production companies, along with oilfield services, continue to feel the pain of the oil crash. Other Houston businesses to report losses over the last few days include oilfield products company Forum Energy Technologies at $5 million, as well as Nine Energy Service at about $24 million.
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Updated 11 a.m. CT Aug. 6
Exploration and production company Parsley Energy says it lost about $400 million in the second quarter of this year as oil prices were pushed to historic lows and drilling came to a near standstill in the Permian Basin.
Earlier this year the Austin-based company joined with Pioneer Natural Resources (Parsley Energy was founded by Bryan Sheffield, son of Pioneer CEO Scott Sheffield) in asking state regulators to cap oil production. The companies argued restricting production would help stabilize the price of oil, but the motion was eventually dismissed.
Parsley still opted to curb its own production even if others weren't required to, and says it suspended all new drilling and completion activity during May and June. In a statement the shale driller says it has reactivated two rigs and two frac spreads in recent weeks.
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Updated 3:20 p.m. CT Aug. 5
Another oilfield services company headquartered in Houston is posting big losses for the second quarter of 2020. Weatherford International lost $581 million in the second quarter, after posting more than $900 million in losses for the first quarter of the year.
The oil crash continues to hit the upstream sector of oil and gas—which searches for, recovers, and produces crude oil and natural gas—the hardest. Pioneer Natural Resources recorded $439 million in losses for the second quarter yesterday.
Also this week BP, which has its U.S. headquarters in Houston, announced it will cut oil and gas production by 40% or 1 million barrels of oil equivalent a day by 2030. The company also says it'll increase investment in low-carbon technology, including renewable energy, carbon capture and bioenergy.
Meanwhile, West Texas Crude is trading a bit higher today at around $42 per barrel.
Florian Martin contributed reporting.
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Updated 3:15 p.m. CT July 24
In a $3.6 billion all-cash deal, Houston-based NRG Energy will acquire Direct Energy, a North American subsidiary of British company Centrica PLC. The news comes just days after Chevron said it will acquire Houston's Noble Energy.
Also on Friday, oilfield services company Schlumberger posted a $3.4 billion dollar loss for its 2nd quarter.
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Updated 2:45 p.m. CT July 23
HOUSTON (AP)—Patterson-UTI Energy Inc. reported a loss of $150.3 million in its second quarter. The Houston-based company said it had a loss of 81 cents per share. Losses, adjusted for non-recurring costs, were 56 cents per share.
It comes a day after Kinder Morgan Inc. reported a second-quarter loss of $637 million, after reporting a profit in the same period a year earlier. Also on Wednesday, Baker Hughes reported a loss of $201 million in its second quarter.
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Updated 10:35 a.m. CT July 20
Oil giant Chevron will acquire Houston-based Noble Energy in a $13 billion dollar deal expected to close later this year. It's the first major consolidation of the 2020 oil bust. As oil prices stubbornly sit at $40 a barrel, many companies are struggling to pay their debts. But that also means companies with strong finances are able to scoop up some assets.
"Our strong balance sheet and financial discipline gives us the flexibility to be a buyer of quality assets during these challenging times," said Chevron Chairman and CEO Michael Wirth in a statement. "This is a cost-effective opportunity for Chevron to acquire additional proved reserves and resources."
With the acquisition of Noble Energy, Chevron expands its operations both here in Texas and internationally.
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Updated 10:30 a.m. CT July 20
For the second quarter in a row, Houston-based oilfield services company Halliburton is posting a loss of $1 billion dollars or more. Today the company announced $1.7 billion in net losses from April to June. Oilfield services companies have been especially hard hit as producers scrambled to reduce supply amid crashing prices. Halliburton has already laid off or furloughed more than 4-thousand Houston workers this year.
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Updated 10:45 a.m. CT June 29
Oil prices had been steady, but ticked down a bit as active Coronavirus cases spiked to more than 18,000 in Houston and Harris County. West Texas Crude (WTI) had made it back up to $40 a barrel, the price many companies say they need just to break even. Monday morning WTI was around $38 per barrel. Experts have said since the beginning of the pandemic that the oil and gas industry would take longer to recover than the rest of the economy. Now even more parts of the industry are taking a hit. The price of natural gas hadn't been dramatically impacted like the price of WTI, but reports show it's going down, and that some buyers are even cancelling shipments.
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Updated 2:40 p.m. CT June 12
Texas has lost 45,000 jobs in oil and gas exploration and production since February of this year. A Rystad Energy analysis of U.S. Bureau of Labor Statistics data shows the oil and gas industry is one of the hardest hit by the COVID-19 downturn. Overall, the U.S. has shed 100,000 jobs in the industry.
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Updated 3:50 p.m. CT June 10
At least 25,800 jobs vanished from the oil and gas exploration and production sector from March to April, according to the Texas Petro Index issued by the Alliance of Texas Energy Producers. Also on the decline: rig counts, the number of drilling permits issued, and the price of crude oil. The only increases were in well completions and the price of natural gas. The index has measured the monthly growth rate of exploration and production since the mid 1990s. Overall the index had its second largest monthly decline on record. The largest drop so far was during the 2015 downturn. Experts say the industry can still expect more job losses and spending cuts in the months to come.
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Updated 8:20 a.m. CT June 8
LONDON (AP) — Energy company BP says that its global workforce will be trimmed by 10,000 jobs amid the ongoing impact of the COVID-19 pandemic. Chief Executive Bernard Looney said Monday that the roles will be office-based and come mostly this year. The company's current global workforce is 70,000. The job cuts come amid a time of tremendous change for BP, which said it wants to eliminate or offset all carbon emissions from its operations and the oil and gas it sells to customers by 2050. The pandemic, meanwhile, has caused huge turmoil for the industry by causing demand for energy to plummet.
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Updated 11:15 a.m. CT May 28
Top U.S. oil producer Exxon Mobil told shareholders this week no layoffs are planned at the moment, even as the entire industry is suffering from low oil prices. Reuters reports shareholders for the Irving-based company also rejected climate-related proposals and splitting the chairman and chief executive's roles at Wednesday's meeting.
Chevron is taking a different approach: it'll cut 10% to 15% of its worldwide workforce. Reuters reports the second-largest U.S. oil producer didn't specify where it would make trims to its 45,000 employee workforce. A Houston Chronicle survey shows Chevron has about 7,000 workers in the city, Exxon employs about 16,000 locally.
Chevron shareholders also approved a proposal to issue a report on its climate change related lobbying activities.
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Updated 1:50 p.m. CT May 26
Before the price of oil crashed, Texas was seeing record revenue from the oil and gas industry—a total of $13.4 billion dollars last year. That's according to a new report from industry group the Permian Basin Petroleum Association. The Permian Basin in West Texas contributed about $9 billion in taxes and royalties to the state coffers in 2019. Overall the oil and gas industry contributed about $1.7 billion more than the previous year, and beat the record set in 2014.
The increased revenue is mostly because of new technology making oil recovery more profitable in West Texas. At least, that was true last year before COVID-19 and an international price war drove the price of West Texas Crude to historic lows. The report acknowledges that while last year set records, this year's price crash has, quote, "put the Texas Miracle on hold."
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Updated 11:05 a.m. CT May 20
Oilfield services company Halliburton is sharply cutting the amount of money it will return to shareholders, citing market conditions and "uncertainties regarding the depth and duration of this downturn." The Houston-based company says for the second quarter of 2020 it will pay a dividend of 4.5 cents per share. That's down from 18 cents per share last quarter.
With drilling down and oil exploration nearly at a standstill, Houston-based oilfield services companies have taken a big hit. This week Flotek Industries reported a first-quarter loss of $64 million, after reporting a profit in the same period last year. Others, including Halliburton, have reported losses of $1 billion or more for the first quarter.
However, nearly every part of Houston's oil industry has been touched by the price crash. Earlier this week exploration and production company Oasis Petroleum recorded a more than $4 billion loss in its first quarter. Also, Reuters reports production company Gavilan Resources filed for Chapter 11 bankruptcy late last week. Experts say as long as prices remain below $40 per barrel, Houston will continue to see bankruptcies and layoffs.
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Updated 9:50 a.m. CT May 19
The monthly trading deadline that helped push oil prices below zero in April did not create the same panic among traders this month. That same deadline is today, but West Texas Crude has been trading around $32 per barrel since markets opened on Monday. However, even though oil isn't heading into negative territory, experts say prices are still bad news for Texas companies. Most companies say they need $40 per barrel or more to at least break even. Economists say companies carrying a lot of debt are especially vulnerable if prices don't go up soon.
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Updated 6 a.m. CT May 18
When Texas oil traded in negative territory on April 20, many experts said one of the reasons why prices went so low was because of a trade deadline. That same deadline is coming up tomorrow, May 19th, but prices aren’t expected to dip below zero again.
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Updated 11:20 a.m. CT May 14
The World Petroleum Conference has postponed its Houston gathering until December 2021. It was originally scheduled for December of this year. The City of Houston says that event had an estimated economic impact of $60-80 million. Because of the COVID-19 pandemic a slew of energy conferences normally held in Houston have been cancelled this year, including CERAWeek and Offshore Technology Conference.
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Updated 12:10 p.m. CT May 12
Experts say more bankruptcies for oil companies could be on the way. Houston energy companies are reporting billions in losses for the first quarter of 2020, and the next few months are not looking much better.
“It's a common aspect of the industry that an exploration and production company borrows money,” says Charlie Beckham, oil and gas bankruptcy lawyer with Haynes and Boone. “I think many, many of the oil companies here in Houston and across the country have been caught with a decrease in the price for the oil that they sell compared to the amount of debt they're carrying on their books.” Read more from our interview with Beckham here.
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Updated 11:20 a.m. CT May 7
Another 1,000 Houstonians in the energy industry are out of work. Houston-based oil field services giant Halliburton will lay off that many people at its corporate headquarters. That's on top of the 3,500 hundred people furloughed back in March.
In a statement Halliburton said the cuts were necessary because of low oil prices and a dramatic drop in demand due to the coronavirus. Many companies, including Halliburton, have posted losses of $1 billion or more for the first quarter of 2020, and most have said they'll drastically cut spending. Meanwhile, thousands of oil and gas workers in Houston have been laid off or furloughed since mid-March.
This week Houston-based Apache Corporation also added its name to the list of companies reporting losses. Apache reported a $4.5 billion loss for the first quarter.
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Updated 10:50 a.m. CT May 6
The same week Texas oil and gas regulators declined to cap how much oil companies can produce, one of the companies that had asked them to consider the idea posted billions in losses. Austin-based Parsley Energy reported a more than $3 billion dollar loss for the first quarter of 2020.
Parsley along with Pioneer Natural Resources had asked the Railroad Commission to consider state-mandated production cuts as part of a solution to plunging oil prices. Commissioners on Tuesday chose not to enact such restrictions.
Additionally, Houston-based Occidental Petroleum and Plains All American Pipeline both reported losses of more than $2 billion for the first few months of the year.
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Updated 12:10 p.m. CT May 5
As expected, Texas oil and gas regulators today declined to force companies to reduce oil production. The Railroad Commission had considered the controversial idea as a way to help stabilize historically low oil prices, but ahead of a potential vote, two out of three Commissioners had come out against it.
Ryan Sitton was the only commissioner to publicly support the proposal.
"The primary message in the statute, in the natural resources code, is that we have to consider waste," Sitton said during the meeting. "My disappointment is that we never really did that. We didn't calculate how much was out there, we didn't determine if proration could prevent waste and if so how."
Commissioners did waive some storage and permit fees in an effort to help companies during the pandemic.
Chairman Wayne Christian also asked the newly formed Blue Ribbon task force to study solutions to flaring, the practice of burning off un-captured natural gas. Environmental groups have been pushing the state to take more action on the issue. Christian provided an overview of what the task force had done since its formation at the April 21 meeting, which can be read here.
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Updated 9:45 a.m. CT May 5
The Texas Railroad Commission, which regulates oil and gas, is meeting this morning, but is no longer expected to vote on a controversial proposal to limit oil production in the state. The Commissioners may still discuss the proposal, but two out of three members have already said they do not support it. Watch the meeting here.
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Updated 5:20 p.m. CT May 4
In a statement to Houston Public Media, Railroad Commissioner Christi Craddick says she does not support proration. The three member Commission regulates oil and gas in the state. A proposal to mandate companies cut oil production has been under consideration, but Craddick now joins Wayne Christian in opposing the measure. Ryan Sitton, the only Commissioner in favor of the cuts, said earlier today he believed the proposal to be dead.
Here’s Commissioner Christi Craddick’s full statement:
“My focus is and has been on jobs and the strength of Texas producers. The Railroad Commission continues to provide operators regulatory certainty in uncertain times. We have done this by reducing regulatory burdens, extending deadlines and having an open door, albeit digitally, to work with operators to resolve challenges they are facing. That work is ongoing. Individual operators have moved swiftly to respond and have done so better than any top down control of the market that some have called for. I will not support proration. All producing states, including the federal government, have a role to play and I have not seen concrete action to do more than what the market is already doing.”
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Updated 4:25 p.m. CT May 4
It appears the Texas Railroad Commission, which regulates oil and gas, will not vote on a controversial proposal that would force some companies to limit oil production.
Commissioner Ryan Sitton took to Twitter and TV today to say he doesn't think a vote will take place at the May 5 meeting, proclaiming to Bloomberg TV "proration is now dead." Sitton was the only one of the three member Commission to publicly come out in favor of the production cut proposal.
Prorationing will not be happening. I wish I could explain why so many Texans will lose their jobs while oil production drops in the US worse than anywhere else, but politics beats data, so there are no answers. Just "free market." #OOTT
— ryansitton (@RyanSitton) May 4, 2020
The production cuts proposal was originally brought to state regulators by two exploration and production companies. It was the topic of the Commission’s first ever virtual publicly hearing on April 14. It garnered a full day of, at times heated, testimony for and against the measure, with most large companies and industry groups in opposition. Some small producers were among those to speak in favor.
Last week in a Houston Chronicle op-ed Commissioner Wayne Christian said he would vote against proration, the process of mandating certain companies reduce production at a certain rate, in this case by 20 percent. Christi Craddick did not publicly share how she'll vote, but she expressed legal concerns at the April 21st meeting.
Sitton says it's probably too late at this point—companies will have to reduce production because of the drop in demand due to COVID-19.
A previous price war between Russia and Saudi Arabia made things even worse for Texas producers. That disagreement resulted in a global oversupply of oil that, on its own, was driving down prices. That plus the hit in demand from the coronavirus has led to historically low prices for West Texas Crude, at one point trading in negative territory.
On Monday West Texas Crude was trading around $20 per barrel.
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Updated 11:20 a.m. CT May 1
More oil and gas companies are posting big losses as a halt in demand due to COVID-19 plus a global oversupply of oil continues to keep prices low. Companies have laid off or furloughed more than 4,000 Houston workers in the last handful of weeks. Halliburton has closed two of its locations in Texas and announced hundreds more layoffs in multiple states.
Today Phillips 66 reported a $2.5 billion loss for the first quarter of 2020. ExxonMobil says it lost $610 million. Chevron had more positive news: it made $3.6 billion in the first few months of the year, but in its report says, "future periods are expected to be depressed as long as current market conditions persist." West Texas Crude oil was still trading at less than $20 per barrel this morning.
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Updated 1:45 p.m. CT April 30
ConocoPhillips is reporting a $1.7 billion loss for the first part of 2020. The Houston-based oil exploration and production company posted about that much in earnings at this time last year. It's the latest oil and gas company to report a loss of more than $1 billion for the first quarter. ConocoPhillips has also said it will voluntarily cut back on production because of weak oil prices.
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Updated 12:45 p.m. CT April 29
State oil and gas regulators will take up a controversial proposal to mandate production cuts at their May 5 meeting. It would require a cut in statewide oil production by about one million barrels per day. Emailed public comments on the proposed order will be accepted through May 4.
The Railroad Commission regulates oil and gas. They've already held a virtual public hearing at which most larger companies and industry trade groups opposed the idea. Some small producers and environmental groups support it.
The Commissioners then discussed the topic at their April 21 meeting. Ryan Sitton was ready to raise his hand in favor of cuts, but Christi Craddick and Wayne Christian wanted more information before taking a vote.
The proposed order would exempt small companies that produce less than 1,000 barrels per day. Experts say they've been hit especially hard by the historically low prices. Other companies would need to restrict their production. The goal is to cut production statewide by 20 percent each month. If a company doesn’t comply, it could face a $1,000 fine for each barrel it produces over the limit.
The order would also require the Railroad Commission to meet each month to determine if the mandated cuts are still needed.
If the order passes it would be the first time regulators enacted such restrictions in the state since the 1970s.
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Updated 9 a.m. CT April 27
BANGKOK (AP) — Contract driller Diamond Offshore has filed for bankruptcy with debts of $2.6 billion, as the energy industry is hammered by crashing oil prices.
Court documents seen Monday show Houston-based Diamond Offshore Drilling Inc. filed the petition in Houston on Sunday, citing the downturn that accelerated with a recent oil price war between Russia and other major producers.
The global economic crisis caused by the coronavirus pandemic has devastated the oil industry in the U.S., which pumps more crude than any other country. Both offshore and onshore oil companies have been laying off hundreds of people.
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Updated 12:10 p.m. CT April 24
Oil and gas companies have laid off more than 350 Houston workers over the last two weeks, according to notices filed with the state. Companies reported more than 2,000 layoffs in oil and gas statewide since April 13, although some took place earlier in the year and are just now being filed. The layoff announcements come as oil reached its lowest price ever this week. In Houston, Baker Hughes and Diamond Offshore Drilling have both laid off more than 100 workers in April. Find more of our coverage on Houston area jobs here.
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Updated 2 p.m. CT April 23
How does Texas oil trade at less than $0 a barrel? We found out this week as prices plummeted, and for the first time ever, West Texas Intermediate (WTI) traded in negative territory. Listen as News 88.7's Kyra Buckley and Eddie Robinson break down this astonishing week in oil prices.
Listen
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Updated 11:25 a.m. CT April 22
Baker Hughes is the latest Houston-based oilfield services company to report billions of dollars lost in the first few months of the year. Today the company announced a net loss attributable to Baker Hughes at more than $10 billion, compared to a $32 million net income at this time last year. It comes after Halliburton and Schlumberger also announced big losses for the first quarter of 2020.
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Updated 10:55 a.m. CT April 21
Texas oil and gas regulators will not vote today on a proposal to cut oil production statewide. They will continue to research proration, along with other methods, to help Texas producers. They could take the issue up again at their May 5th meeting.
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Updated 10:10 a.m. CT April 21
The Texas Railroad Commission, which regulates oil and gas, is set to discuss the proposal to mandate oil production cuts during this morning’s meeting. Watch the live feed here.
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Updated 9:20 a.m. CT April 21
After West Texas Crude traded below $0 a barrel for the first time ever on Monday, prices are back in the positive, but not by much. Traders are still concerned that storage space is running out as worldwide oil demand remains low because of the pandemic.
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Updated 2:50 p.m. CT April 20
NPR is reporting that for the first time ever West Texas Intermediate (WTI) is trading below $0 a barrel. That means some in the oil trade are paying to offload their barrels amid a concern that storage space is getting low. Overall demand for oil has dropped significantly due to the Coronavirus pandemic, and international price disputes have contributed to an oversupply.
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Updated 1:25 p.m. CT April 20
NEW YORK (AP) — Stocks are mixed in midday trading on Wall Street, while the price of oil cratered to never-before seen lows. A barrel of benchmark U.S. oil for May delivery fell below $1.50 per barrel Monday. While the plunge was largely due to technical reasons, prices for other oil contracts also plummeted on the same fear. Demand for oil has collapsed so much due to the Coronavirus pandemic that facilities for storing crude are close to running out of room.
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Updated 12:15 p.m. CT April 20
The price of West Texas Crude continues to fall on Monday to less than $5 a barrel at times. One reason: oversupply of oil is leading to fears that there’s not enough storage space. Experts do say that futures are back in the $20 a barrel range.
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Updated 11:45 a.m. CT April 20
Houston-based oil giant Halliburton says it suffered a $1 billion net loss for the first quarter of this year. Halliburton has already furloughed 3,500 workers in Houston and announced layoffs in other states. The announcement comes as Texas oil hits a 20 year low. West Texas Crude traded at less than $12 a barrel at times Monday morning, the lowest it's been since the late 1990s. Experts say futures are doing okay, though, and prices are expected to go back up slightly in coming weeks.
Prices at the gas pump are also down. On average drivers in Houston will pay $1.57 per gallon according to gasbuddy.com. That’s down more than $1 from this time last year.
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Updated 11:40 a.m. CT April 17
Oilfield services company Schlumberger will furlough workers, cut jobs, and slash spending to try and keep up with the historically low price of oil. The Houston-based giant reported a loss for the first quarter of 2020. The company says it will close some facilities and lower salaries but did not provide details.
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Updated 1:25 p.m. CT April 16
As Texas oil and gas regulators decide if they should mandate production cuts to stabilize the price of oil, Houston-based ConocoPhillips says it will do so voluntarily. The company says it will start curtailing production in Canada and the contiguous U.S. by 225,000 gross barrels per day in May. ConocoPhillips says it will also cut spending by an additional $3 billion for a total of more than $5 billion.
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Updated 10:15 a.m. CT April 15
In a rare move, some oil and gas companies are asking the state to regulate them more. They want the Texas railroad commission to put a cap on production for all companies in the state, saying it will help stabilize historically low prices.
However, not everyone agrees, and the commission heard both sides in a virtual hearing on Tuesday April 14. Listen to our coverage of the hearing, and read more from our Texas Newsroom partners here.
Listen
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Updated 10 a.m. CT April 14
Texas oil and gas regulators are discussing mandatory production caps at a virtual public hearing today. Watch the livestream meeting here. Supporters say the move would help stabilize the now-plunging price of oil; opponents say they don't want state intervention in the market. Pioneer Natural Resources and Parsley Energy asked the Railroad Commission, which regulates oil and gas, for the meeting last month. Company leaders, economists, and other industry experts are expected to weigh in, and a vote could come as early as next week. The Commission hasn’t capped production since the 1970s. Find more of our coverage here.
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Updated 4 p.m. CT April 13
Houston oil and gas workers have experienced price crashes before. However, with the global pandemic and international supply squabbles both driving down the price for Texas oil, is this downturn different than ones in the past? Find our coverage of how Houston workers are feeling here.
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Updated 9:20 a.m. CT April 10
DUBAI, United Arab Emirates (AP) — The OPEC oil cartel and nations including Russia have agreed to boost oil prices by cutting as much as 10 million barrels a day in production. Even more countries, including the United States, were discussing Friday their own cuts in what would be an unprecedented global pact to stabilize the market. The agreement between OPEC and partner countries aims to cut 10 million barrels per day until July, then 8 million barrels per day through the end of the year, and 6 million a day for 16 months beginning in 2021. Mexico had initially blocked the deal but said Friday that the U.S. will take on some of its cuts.
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Updated 11 a.m. CT April 9
OPEC will hold an emergency meeting today to talk about production cuts. Listen to this preview from NPR’s Jackie Northam, and find more coverage on how the dispute between Saudi Arabia and Russia has impacted Houston here.
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Updated 1:15 p.m. CT April 8
Marathon Oil will join the growing number of companies that are cutting spending due to market conditions. The Houston-based exploration and production company says its 2020 capital spending is going to be about 50 percent below actual capital spending in 2019.
North American exploration and production companies are set to reduce spending by more than 35 percent relative to 2019, according to research firm IHS Markit. Of the 44 companies that have made public spending announcements, 41 are cutting levels.
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Updated 12:40 p.m. CT April 7
Houston-based pipeline operator Plains All American says it will also slash its capital expenditure budget as companies react to plunging oil prices. In a statement the company said it will reduce its capital program by 33 percent. It also said Plains has completed a $165 million asset sale.
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Updated 11:05 a.m. CT April 7
Texas-based ExxonMobil will cut spending by 30 percent this year. It's the latest oil and gas company to announce cuts due to COVID-19 and low oil prices. The company said it will also slash operating expenses by 15 percent. Most of the spending reductions will be in the Permian Basin in west Texas.
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Updated 2:45 p.m. April 6
Houston-based oilfield services firm Halliburton will lay off 350 employees in Oklahoma, according to a state filing. Reuters reports staff cuts could begin this week as COVID-19 and international price disputes continue to hurt oil prices. Last month Halliburton placed more than 3,000 Houston employees on mandatory furlough.
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Monday, April 6, 2020
Oil prices are at a historic low, and the impacts are being felt in Houston and across Texas.
The COVID-19 pandemic and a dispute between Saudi Arabia and Russia are keeping West Texas crude at around $20 per barrel. On average, producers in west Texas told the Dallas Fed Survey they need to make around $30 to cover expenses.
The coronavirus health crisis means demand for oil is down as more people stay home, and supply is filling up in Texas and other oil-producing states. That alone would drive down the price.
But the disagreement between Russia and Saudi Arabia further complicates things, as both countries have threatened to flood the market with cheap oil, which some experts say will hurt U.S. producers.
Because the oil and gas industry is being hit from two different sides, experts say we could see layoffs and bankruptcies. Small and mid-size producers are especially vulnerable.
As oil prices plunge, Houston Public Media is following the story, and providing updates here and on the air.