AUSTIN (1080 KRLD) - The Texas Railroad Commission, which oversees oil and gas exploration across the state, will form a task force to study options to help the industry recover from recent crash in oil prices.
Monday, the price of West Texas Intermediate for May delivery closed at negative $37.63 a barrel, meaning producers would have to pay buyers to take delivery because of a lack of available storage.
"This is not going to be easy," says Texas Railroad Commission Chairman Wayne Christian. "It will not happen overnight, but Texans will rebuild this industry, which has literally changed worldwide."
Christian says the task force will include trade organizations with goal of saving "as many jobs and enable operators to survive and return to a robust level as quickly as possible."
"While this is a dark time for energy producers and our economy, I have no doubt once this COVID-19 has rescinded, and America's back to work, a rebound will occur," he says.
"I want to make sure all sides are available on this," Commissioner Christi Craddock said.
Commissioners said the delay would give them the opportunity to discuss the order with the Texas attorney general. Christian said he would also like to coordinate a plan with Oklahoma, North Dakota and Canada.
He says the commission can vote next month, and the order for production cuts could take effect June 1.
"There is no simple answer during this time, but the Texas oil and gas industry is resilient and full of hard-working, creative professionals who can solve problems for a living," Christian said.