Force Majeure just reared its ugly head in oil production across the Permian Basin, an oil-rich region where production was already down more than 1 million barrels of oil a day.
It’s the term thrown out Oklahoma Corporation Commission meeting this week as regulators debated how to order utilities to focus on customers as they struggled to maintain power production.
When something is out of the control of a company providing natural gas, there’s always a force majeure clause in the contracts. And that’s what just hit the Permian as Occidental Petroleum Corp., the second-largest oil producer in the Permian declared this week.
It informed buyers it couldn’t provide the contracted oil because of the historic Arctic weather that hit the region.
Click here for story from Bloomberg.