Nearly a month after the Oklahoma Corporation Commission granted an emergency shut-in request by a Tulsa energy company, oil prices were around $14 a barrel and the firm, LPD Energy contended it was a waste of oil.
The Commission on a 2-0 vote with Commissioner Bob Anthony not voting, agreed and approved the emergency order.
On Tuesday, the Commission will decide on LPD’s request for an interim order. But now oil prices are in the $34 range.
LPD Energy LLC is still seeking an order to prevent waste and allow it to shut-in wells and curtail production “from wells where the operator deems such action necessary in current abnormal and volatile pricing environment.”
The Oklahoma Energy Producers Alliance supports LPD’s request but with higher oil prices, it’s unclear if those pushing the ability to shut-in wells are as strongly supportive of the requested move.
A request by the OEPA for a state-wide “waste” order was taken under advisement by the regulators who have not approved returning the request to an agenda.
The Commission will take a possible vote on the LPD interim order request when it holds a regular meeting at 1:30 p.m. on Tuesday. Since the Commission last week extended its emergency order of holding virtual meetings and keeping the Jim Thorpe administrative building closed to the public due to the coronavirus pandemic, the meeting will be virtual.
Source: OCC agenda