Occidental Issues Force Majeure as Cold Shuts in Permian Oil
- Weather affects crude delivery in the field and on the coast
- Unclear how long supply curtailments to customers will last
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Occidental Petroleum Corp., the second-largest oil producer in the Permian Basin of West Texas and New Mexico, told buyers it will be forced to curtail deliveries due to complications from the historic freeze in the region.
The company said weather disrupted transportation facilities and forced delays in the receipt and delivery of oil by carriers, according to a force majeure notice to customers seen by Bloomberg. Occidental also expects curtailments of downstream shipments because of limited deliveries into Midland, Houston and Corpus Christi in Texas. A company spokeswoman declined to comment.