Texas Railroad Commission Dismisses Possible Proration of Oil Producers
There will be no proration of Texas oil producers as determined by a majority vote on May 5, 2020.
According to NewsWest 9, the request was denied by the TRC by a vote of 2-1 which means the free market of oil production will not be stopped.
"We're already seeing producers cut back without being regulated. When the price of oil is below the break even number that tells you not to bring big new wells online and we're already seeing that happening," said energy economist Dr. Ray Perryman.
Dr. Perryman also stated that if a proration was approved, it would have only had a 1% maximum effect on the world oil supply which would not have made a significant impact.