The Louisiana Oil and Gas Association issues a dire warning about the state of the oil industry. U.S. crude oil prices dropped to negative levels for the first time in history. May delivery sank to a new low of minus $37 over fears that there is more supply than demand.
“The crisis facing the industry is impossible to overstate,” Louisiana Oil & Gas Association President Gifford Briggs said. He adds that “there is no magic pill that will save the thousands of jobs that will be lost, but we can immediately take steps to limit the losses.”
LOGA says many of its members are being told they cannot deliver oil in May because of storage is mostly full. As a result, some oil producers are planning to shut 100% of their Louisiana production.
In a statement released Monday, Briggs outlines steps he says Louisiana must take to help the oil industry survive. He says the state must work with federal officials to get the economy restarted. Briggs also calls for severance tax relief, royalty relief, and an end to government sponsored lawsuits.