Ali al-Naimi spoke in Houston last week to the audience of Energy executives. He said the only way to stop the low price problem is to “stop producing the oil that is most expensive to extract and sell.”
Many companies committed to cut 5% to 10% from last year’s production. These companies include Continental Resources Inc., Devon Energy Corp., Marathon Oil Corp., and EOG Resources Inc.
These cut will not affect too much of the dilemma faced today in oil and gas price crisis.
Some companies however might fall to the temptation of pulling the trigger too soon. If oil gas price are starting to rise, some producers might start increase production volume to race against the energy price again.