News & Updates: Member Updates

Texas Railroad Commission Considering Oil Production Limits on May 5

Friday, May 1, 2020  
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The Railroad Commission of Texas (RRC) is seeking public comments on a proposal that would cut the state's oil production by 20 percent per month. The proposal would fine violators $1,000 per barrel but would exempt companies that produce less than 1,000 barrels of oil per day. Oil production limits, a measure that has not been employed since the 1970s, may be voted on at their May 5 meeting.

At the last meeting of the RRC on April 21, they formed a Blue Ribbon Task Force for Oil Economic Recovery (Task Force). The Task Force will be led by the state's major trade associations that include the Texas Oil and Gas Association, the Texas Alliance of Energy Producers, Texas Independent Producers and Royalty Owners Association, the Permian Basin Petroleum Association, the Panhandle Producers and Royalty Owners Association, and the Texas Pipeline Association. The Task Force will study the market situation and focus on strategies for economic success for the oil industry.

Anyone interested in providing comments on this draft order may do so by emailing rrcconference@rrc.texas. gov no later than Monday, May 4, 2020.