Railroad Commission of Texas is expected to meet Tuesday, April 14, to hear testimony and consider using its authority to implement crude oil production cuts during a time when prices are at 20-year lows. The agency, which regulates the state’s oil and gas industry, said April 2 commissioners will conduct a virtual meeting at 9:30 a.m. CEOs of Pioneer Natural Resources and Parsley Energy had called for the meeting while opponents say the agency should allow the free market to determine production. Live online video and audio of the meeting will be available.
“We applaud the commission’s efforts to hold a market demand hearing,” Ben Shepperd, president of Permian Basin Petroleum Association, told Midland Reporter Telegram. “These are extraordinary times, and I appreciate the commission’s efforts to gather data. Some in the industry strongly favor the commission implementing their proration statutes. Others feel the dramatic drop in oil and gas demand and the corresponding voluntary shutting-in of wells and reduction in drilling will have the desired effect of limiting production.”
The next scheduled meeting of the RRC after next week’s hearing is April 21.
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