History tells proration would cause chaos in the Texas Oil Patch

Forbes | The Railroad Commission of Texas (RRC) will hold a hearing tomorrow morning to discuss the possibility of prorationing Texas oil production after receiving a petition from Pioneer and Parsley. The hearing comes as the COVID-19 pandemic has reduced national and global oil demand and significantly lowered crude prices. While the RRC undoubtedly has the authority to regulate production, it does not have the resources. Proration requires up-to-date production data, a large number of employees with technical knowledge, a large budget, and the will to enforce the policy aggressively. The RRC does not have any of these requirements.


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