The Crude Life host Jason Spiess joins Genneca for a weekly energy report on The Country Twins morning show. Spiess talks about North Dakota as the latest state to discuss whether the state should get involved with controlling production.
Industry’s ideological crossroads of whether to allow government intervention or not has been percolating since this past March. On one spectrum, Mike Sommers, president, API, immediately shuts down bail outs and government intervention. On the other hand, Parsley Energy CEO Matt Gallagher publicly discusses government intervention on CNBC.
Since then, the Texas Railroad Commission has had several meetings discussing the idea of government-mandated production cuts. So has Oklahoma.
During the public meeting in the Bakken on May 20, Blu Hulsey, Continental Resources, said that utilizing government-mandated production cuts will allow industry to be more “economic and proper”.
The majority of the mineral owners who testified were opposed to the imposition of government-mandated production cuts because many oil leases contain provisions that allow for the termination of the contract if an oil well stops producing for an extended period of time.
Spiess also pontificates whether the insurance industry would need a bail out or government intervention this summer. His thesis is that sometime in the fall, the nexus of force majeure in restaurants and energy will intersect with nearly 30 million Americans losing employer-paid insurance.
Spiess makes the comparison of the CARES Act and PPP program as making employers “satellite unemployment offices” while the coronavirus kerfuffle continues. Fact is no one knows if and when the economy will get rolling again so the 30 million American speculated to be “let go” in September, could be even higher.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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