The chairman of the Texas Railroad Commission, which also regulates state oil production, is opposed to restrictions on production.
“I will vote against the restriction of oil production in Texas and I will adhere to the principles of the free market,” wrote Chairman Wayne Christian on Twitter.
He expressed his opinion in detail in an article in the newspaper Houston Chronicle.
In particular, the head of the commission noted that in 1950 Texas controlled more than 20% of world oil supplies, and today it is about 5%.
“Given this, a government order to reduce oil production by 20% across the state will not have a significant impact on global oil supplies. In addition, industry is already cutting production on its own.”
By allowing the free market to work, manufacturers can decide for themselves what level of production is economically viable, ”Christian wrote.
He noted that all major oil associations, in particular the Texas Oil and Gas Association and the Texas Alliance of Energy, opposed the resumption of production regulation practices, which the state had abandoned back in 1973. Producers).
Thus, Christian did not support the position of Commissioner Commissioner Ryan Seatton, who advocates regulating oil production to stabilize prices.
OPEC + agreed on April 12 to reduce oil production by 9.7 million barrels per day in May-June, 7.7 million in the second half of the year and 5.8 million further until the end of April 2022. The base of reference was taken in October 2018, but for the Russian Federation and Saudi Arabia, 11 million barrels per day were taken, from which, by analogy with all, there is a decrease of 23%, 18% and 14%, respectively. Mexico insisted on separate conditions: it reduces production by only 100 thousand barrels per day in May-June, the remaining 300 thousand for it is reduced by the United States.