The Domestic Energy Producers Alliance is a nationwide collaboration of 25 coalition associations – from California to West Virginia, Texas to Montana – representing about 10,000 individuals and companies engaged in domestic onshore oil and natural gas exploration and production (E&P). We believe in seeking common ground, and in common sense solutions to the challenges that face us in our businesses, including our relationship with the federal legislative and executive branches of government. In only its fifth year, DEPA now represents a majority of the individuals and companies responsible for the current renaissance in American oil and natural gas production.
Crude oil is entering another period of uncertainty as producers in the U.S. continue to increase exploration while OPEC nations and Russia try to maintain their pledge to reduce their oil production by 1.8 million barrels per day.
Crude oil prices on the New York Mercantile Exchange (NYMEX) closed below $50 per barrel on April 24 for the first time since May 29.
Traders worldwide are trying to sort it all out, but a key factor is OPEC’s decision to continue its six-month agreement to reduce its oil production, which expires June 30.
Energy policy has taken an about-face in the nation’s capital.
Instead of the President implementing policies to restrict the use of the nation’s most plentiful energy sources, the nation’s new leader encourages domestic energy production and believes in limiting imports.
Some have used the phrase “energy independent.”
The oil industry in Texas and across the U.S. nervously awaited a weekly report from the U.S. Energy Information Administration (EIA) on Wednesday, and for the reaction of crude oil traders who bid on New York Mercantile Exchange (NYMEX) oil futures.
Crude oil production in the U.S. has been increasing since July from 8.458 million barrels per day (b/d) to 9.109 million b/d on March 10. Crude oil stocks had increased for nine consecutive weeks, resulting in prices declining to $47 from a high of $54 just two weeks earlier.