The pandemic and the price war between Saudi Arabia and Russia have resulted in near-interruption of US production, stockpiling to fill quickly, crude tank prices and a record amount of well closures and downgrades. base of oil fields.
Markets rebounded slightly on Tuesday in hopes that the world’s major oil producers will agree to cuts in production at an emergency OPEC meeting on Thursday. But U.S. energy leaders met on Tuesday to discuss solutions.
The payments, benefits and loans described in the CARES law are available to energy companies and their workers if they need them, but many legislators have decided to go further to help the oil and gas industry.
Senator John Hoeven, R-N.D., Introduced a bill to provide $ 3 billion in funding to buy American crude oil for the Strategic Petroleum Reserve, to support domestic energy production.
The North Dakota Petroleum Council has declared that this law will create significant relief for the petroleum industry as it is in desperate need of capital.
“We have always had a demand. And without a demand, it will become a very difficult situation for the destination of these barrels,” said ND Petroleum Council president Ron Ness.
But the Ministry of Energy says that this policy will not only benefit energy producers.
“There is no better return to taxpayers than if we buy it at these low prices, and they are terribly low, but then we can sell it at a later date. It will be good for taxpayers,” said the assistant secretary to fossils. Energy Steven Winberg.
However, the price war remains a huge obstacle. Hoeven says he has pressured Saudi Arabia to cut supply.
“One of the things that has come up is what the United States is doing. Well, we are a market economy and we are already reducing supply,” said Hoeven.
He says we will see how the other OPEC countries react later this week.
For producers who have been affected by the pandemic, Hoeven encourages to explore the many ways in which the CARES Act can help.