Energy Economists Warn NDIC To Vote No On ND Oil Production Cuts

They warn forcing producers to cut production will not stabilize prices for producers.

BISMARCK, N.D. – The North Dakota Industrial Commission will vote tomorrow on if the state should mandate production cuts for oil producers.

Economists are warning them to vote no.

They warn forcing producers to cut production will not stabilize prices for producers.

They also say storing oil is not a financial issue for North Dakota producers, as they already utilize a storage practice known as Storage In Place.

“It’s kind of a backdoor way to get out of contractual obligations that these companies made, and that would be a terribly bad precedent to set,” said Ed Hirs, a Fellow of Natural Resources for BDO Inc.

Hirs says these obligations have been made years in advance, and bailing out producers from their obligations now will lead to increased taxes and tension down the road.

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