WASHINGTON D.C. (NEXSTAR) — President Trump says he won’t let the oil industry collapse, as oil prices surged for a third straight day Thursday giving some hope that fuel demand is starting to return.
Some Texas lawmakers are scrambling to find solutions to the over-supply of oil in the state.
As the oil industry scrambles to find places to put the millions of barrels worth of extra oil, President Donald Trump says he might have a solution. He and Treasury Secretary Steven Mnuchin say the administration is looking at buying undeveloped oil reserves and adding them to the U.S. emergency stockpile.
Texas Republican Congressman Jodey Arrington says Congress should step in and help.
“Congress needs to pass resources that will allow the president to purchase some of this oil and reduce the glut, stabilize the price,” explained Arrington.
Demand for oil is extremely low as millions of Americans are staying home due to the COVID-19 pandemic. There is a large quantity of unused oil and companies are running out of places to store it.
Texas Democrat Lloyd Doggett says action that just props up oil companies is a bad idea.
“I don’t want to see them discriminated against, but neither do i want to bail them out,” said Doggett.
Secretary Mnuchin says the administration is also considering rolling out a loan program for oil companies to help producers bounce back.