OREANDA-NEWS. The Wall Street Journal reports that American oil company Texland Petroleum LP has decided to suspend production at all wells due to a sharp drop in demand. The company’s President Jim H. Wilkes noted that Texland has never done this before, as it could always sell oil, even at an unfavorable price. He also reported that the enterprise appealed to the state government for a loan that would allow to pay salaries to 73 employees.

Larger oil companies are also cutting production. Continental Resources plans to reduce the pumped oil volume in April and May by about 30 %. Parsley Energy stopped work at approximately 150 wells, the newspaper writes. According to Parsley Energy CEO Matt Gallagher, the development of those wells is no longer cost-effective.