Texas RRC will not do anything to reduce oil production
The Texas oil regulator will almost certainly not do anything to reduce state oil production. This conclusion can be drawn from the statement of the Commissioner of the Texas Railroad Commission (Texas RRC, regulates the oil industry in the state) Ryan Sitton.
“Now we are not ready to act, and already too late. There aren't even any suggestions. I think that the issue of quotas is now irrelevant, ”- said Commissioner on the air of the Bloomberg TV channel. According to him, the management of Texas RRC did not make proper calculations and did not assess the losses from the reduction in oil production and its impact on the US economy.
Earlier, the head of the commission Wayne Christian opposed restrictions on oil production. In particular, the head of TRC noted that in 1950 Texas controlled more than 20% of global oil supplies. And today it is about 5%, and this is too little to really influence the market situation.
Christian emphasized that all the major oil associations opposed the resumption of the practice of regulating production, which the state had abandoned back in 1973. In particular, the Texas Oil and Gas Association and the Texas Alliance of Energy Producers.
Sitton is the only Texas RRC to call for cuts in production
But Ryan Sitton, on the contrary, supported the idea of cutting production. On Tuesday, a vote should be held on this issue. But the commissioner strongly doubts that this vote will take place at all.
In general, Seaton, in opposition to the other two members of the Texas RRC, became a significant figure in the global oil and gas industry thanks to his statements. “I did not attend the OPEC + meeting, but if I participated, I would say that at least 20 million barrels per day should be reduced. And in the next three months, the United States will reduce production by 4 million barrels per day organically, “Seatton wrote on his Twitter page.
” If nothing is done, the storage facilities will be full in two months. And at that moment the world will need to reduce production by 30 million barrels per day, ”the commissioner added. : ///
Record Texas RRC will not do anything to reduce oil production first appeared TEKNOBLOG .
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