Pioneer And Parsley’s Petition For A ‘Market Demand Hearing’ Granted

Seeking Alpha | Apr 8, 2020 at 5:26 PM
  • The Texas Railroad Commission (“RRC”) has been asked (“The Motion”) to conduct a “Market Demand Hearing” and to issue an order effective May 2020 production pursuant to its findings by Pioneer Natural Resources USA, Inc. (PXD) and Parsley Energy, Inc. (PE).
  • In the Motion, the oil companies argue that a massive oversupply of as much as 20 million barrels per day is pouring into global market, raising global inventories by 100 million barrels per week in the second quarter of 2020, at current rates.
  • The Motion follows an op-ed piece written by the RRC’s Ryan Sitton on March 19th in which he points to the coronavirus and oil price war being waged by Russia and Saudi Arabia as creating oil prices that are being “warped by forces completely outside of normal economic conditions.”