US state asks Trump to declare coronavirus an 'act of God' to help oil producers
USA
The governor of the US state of Oklahoma has called on US President Donald Trump to declare the coronavirus pandemic an "act of God" -- in order to help oil-producing states contend with a crude glut that caused futures prices to close below $0 last week for the first time.
Declaring a "force majeure" or "act of God" would allow oil companies to halt operations without risking that land leases will be cancelled for stopping production, Governor J. Kevin Stitt said in a letter to Trump that he posted on Twitter late on Saturday.
Oklahoma's energy regulator said on Wednesday that producers could close money-losing wells without losing their leases, the first victory for struggling US oil companies seeking relief from states after the market crash.
US production reached a record-high of near 13 million barrels per day late last year, but the pandemic has cut global consumption by 20 per cent to 30 per cent, or up to 30 million bpd.