Exxon Mobil Corp is against energy regulators in Texas mandating any oil output cuts on declining energy prices.
Exxon Mobil is the latest large oil company to oppose the reducing output idea. Occidental Petroleum and Chevron Corp have also opposed a coordinated pullback in Texas oil production.
The US energy companies are cutting tens of thousands of workers and losing money on oil production. Some of the energy companies are struggling to obtain financing. As oil prices have crashed two-thirds this year, Texas oil producers have been hurt. Prices fell by half to near $20 a barrel last month alone as the coronavirus slashed fuel demand.
To mandate production curbs, the Railroad Commission has the authority in the state. Next week, a proposal will be considered by the commission to require larger oil producers to cut output by 20 percent starting next month. Shale producers Pioneer Natural Resources Co and Parsley Energy Inc submitted the proposal, backed by Commissioner Ryan Sitton.
