UPDATE: From the Oil Patch
Tulsa, OK – Oil producers seek pricing relief
OKLAHOMA CITY (AP) Oklahoma oil producers say a glut of crude at the massive Cushing oil storage terminal is driving down the cost of oil they produce.
Oilmen appeared before the Oklahoma Corporation Commission this week to discuss the problem and suggest solutions. The commission regulates public utilities and the oil and gas industry.
The economic recession has led to a decline in demand for oil. But pipelines have continued to carry Canadian oil to the Cushing terminal, swelling its storage capacity.
As a consequence, independent oil producers in Oklahoma and other states have watched the price of domestic oil sold at Cushing driven down below market prices.
Harold Hamm of Enid-based Continental Resources says prices for domestic oil are about $5 a barrel less than what they should be.
Copyright 2009 The Associated Press.