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Important Message For Customers:

The Ontario Government has legislated that all non-essential businesses MUST BE closed BY 12:01 am on March 25. The health and safety of our employees, clients and our community is our top priority. To do our part in slowing the spread of COVID-19 we will temporarily close our administrative offices until further notice.

Furthermore, our carrier, UPS, has notified us that all shipments will not be insured and will not require a client’s signature upon delivery until further notice. Given the nature of our business, we are not willing to take that risk with your investments. As a result, we are temporarily suspending all shipments within Canada until UPS lifts these protocols.

Use e-mail for more expedient service.

Please be assured that your orders will be shipped to you as soon as we can. These are valuable investments you are making, and we want to make sure we send them in a safe, secured and insured manner. Should you have any questions or concerns, please reach out to us at 1-888-861-0775 or email us at sales@sprottmoney.com

Thanks for your patience and understanding in this difficult time.

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Texas oil producers ask state to limit output as prices collapse

Texas oil producers ask state to limit output as prices collapse
By Thomson Reuters 18 days ago 165 Views No comments

March 19 (Reuters) - Two of the biggest oil producers in Texas are asking the state regulator to consider curtailing the amount of oil companies can pump - an attempt to stem a dramatic collapse in prices and something that has not been done since the 1970s.

U.S. shale firms this month slashed as much as 50% of planned spending as falling demand due to the coronavirus and a price war between Saudi Arabia and Russia threw the oil market into a free fall. With oil prices down 60% this year, Parsley Energy and Pioneer Natural Resources want regulators to consider setting limits on how much oil large firms can send to market.

Inaction would lead to oil prices falling to the single digits and "absolutely decimate the American oil and gas industry," said Matt Gallagher, chief executive of Parsley, adding Pioneer shared his view. "We're looking for stabilization to keep American workers employed as much as possible."

The Wall Street Journal first reported on Thursday that several unnamed companies were pushing the idea.

Pioneer Natural Resources and state regulators did not immediately respond to requests for comment.

The Texas oil and gas regulator, the Texas Railroad Commission, imposed production limits on producers in the 1930s to try to prop up prices and later was a model for the creation of OPEC.

Production limits could reduce price volatility, but by the time regulators act, "we will be in a completely different market environment," said Artem Abramov, head of shale research at Rystad Energy, adding that it would be hard to implement new rules for thousands of producers quickly and might push drilling activity from Texas into neighboring New Mexico.

Production limits would have to "be part of a comprehensive solution," Gallagher said, adding that tariffs on additional new oil barrels arriving in the United States could be one idea, or that other states might limit production. Small oil producers would be exempt, Gallagher said.

The United States could begin purchasing domestically produced crude oil for the Strategic Petroleum Reserve as soon as two weeks from now - an attempt to try to prop up the shale industry.

Saudi Arabia has chartered about half a dozen supertankers to ship up to 12 million barrels of crude to the U.S. Gulf Coast, as it escalates its fight with Russia for market share.

The coming flood of supply from Saudi Arabia and other producers could result in the largest surplus of crude in history, said global information provider IHS Markit. (Reporting by Jennifer Hiller in Houston; Editing by Daniel Wallis)

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

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