P.M. BRIEFING : Texas OKs Greater Oil Output
The state of Texas will allow oil producers to pump about 20,000 extra barrels a day because of the Persian Gulf crisis, officials said today. That is still only a fraction of the state’s 1.7-million-barrel daily capacity.
The Texas Railroad Commission on Thursday approved the increased production at the request of federal energy officials to help offset potential oil losses from an international trade embargo against Iraq and Kuwait.
The commission, however, refused to increase production in the large East Texas Field, saying it wanted more time to consider arguments between independent oil producers and major oil companies.
By comparison with the 20,000-barrel increase, OPEC this week allowed production hikes expected to cover most of 4 million barrels daily lost from Iraq and Kuwait.
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