A PBPA Q&A with Christie Craddick, Texas Railroad Commissioner
The Permian Basin Petroleum Association is pleased to serve up this feature for readers of Permian Basin Oil and Gas Magazine. This “PBPA Q&A” is an opportunity for readers to learn a little bit more about industry and regulatory leaders, energy pioneers and elected officials, about their backgrounds as well as the opportunities and challenges they see in the future. We are proud to serve as the voice of the Permian Basin and hope you enjoy this second-ever installment of our “PBPA Q&A,” this time featuring Texas Railroad Commissioner Christi Craddick.
Christie Craddick
PBPA: Could you describe your role on the Texas Railroad Commission and briefly share, for the readers, what the duty and powers of the Commission are?
Craddick: The Texas Railroad Commission is the state’s oldest regulatory agency. In 1891, voters set into our Texas Constitution the duty to prevent discrimination in railroad charges and establish reasonable tariffs. The Texas Legislature later expanded our duties to include the conservation of oil and gas and the prevention of waste. For the past 100 years, the Railroad Commission has set a standard for efficient oil and gas regulation built upon our state’s strong private property rights and our citizens’ unending entrepreneurial spirit.
Since the beginning, the Railroad Commission has had three commissioners who serve to chart the course of the agency. They do this through their many duties, including decisions of fact for contested hearings and permits, and policymaking that aligns with industry innovation. In short, this includes regulation of oil and natural gas production, the permitting and inspection of surface coal and uranium mining, the permitting and inspection of pipelines, and the regulation of gas utilities to ensure fair rates for consumers and industry.
PBPA: How did your background as a Midland native, and your vast personal experience with the oil and gas industry, serve you as you were elected to the Commission?
Craddick: I’ve experienced the energy industry from many perspectives. I grew up in an oil and gas family, so I know firsthand the importance of the industry in providing jobs and economic security. Texans value limited government and free markets to foster industry and economic growth. As a regulator, I understand the responsibility we have to all Texans to ensure the safe, responsible production of our energy resources that benefit every Texan, whether they work in the industry, or benefit from affordable energy and the billions of dollars in tax revenue the industry generates for our schools, roads, and critical public services.
As a Midland native, I’ve watched with deep pride the Permian Basin become the world’s most productive basin. It’s an honor to apply my energy background, experience, and expertise to ensure Texas continues to benefit from this incredible region. This community has seen good times and bad and they know what a profound negative impact regulation and government overreach can have, not only on producers but on the small businesses that provide crucial support to the overall oil and gas industry. Above all, I hope Texans know that I am available and accessible to them to ensure the agency is doing the best job we can do.
PBPA: Having served on the commission and recently as the Chairman, what is your focus on the agency? What are the great issues you see in the immediate future for the agency?
Craddick: I remain focused on two items: modernizing this agency and both hiring and retaining good people. We are making good progress to modernize our technology by moving off our Mainframe, a computer program that utilizes COBOL. This computer language is well over 50 years old. By the way, if you still program in this language, we’re hiring. Moving off the Mainframe will further enable us to automate many of the things we do, and what we require of operators. As a result, both the agency and operators will save precious time and money. I’m grateful to the Texas Legislature for supporting this important work through continued funding for our modernization program. Already there is more transparency in the work of the agency and savings to Texas taxpayers.
The recruitment and retention of talented staff remains another top priority. I’m very pleased the Commission has on staff a record number of oil and gas and pipeline safety inspectors. We can’t and won’t stop there. We have a need for more pipeline inspectors in this state in order to continue to prioritize public safety and to allow for timely construction of needed infrastructure.
I also championed an effort called the Oilfield Relief Initiative. We recently completed phase two, which reduced paperwork demands on operators and our staff; saving you time and money. This was made possible by our hardworking Railroad Commission staff and operators who worked together to identify needed changes to keep Texas leading the world in safe, efficient energy production.
PBPA: What are some areas where the industry or agency can improve upon?
Craddick: Communications. We have made great strides communicating the important duties, responsibilities, and activities of the agency. We are active on social media, producing informative videos, and we’re in communities across Texas visiting with people. We produce a monthly newsletter to which anyone can subscribe. We’re always exploring new ways to better tell our fantastic story; in 2019 we plugged more than 1,700 abandoned wells, conducted more than 130,000 oil and gas inspections, and cleaned up and assessed more than 400 abandoned oil field sites.
I think industry communications have also greatly improved through trade associations and advocacy groups adding resources for the general public who are looking for answers to everyday questions about safe, reliable Texas-produced energy. I hope we are all better informed when talking to our kids, teachers, and neighbors about the positive impact the Texas oil and gas industry has on our state and what the consequences would be if we pursued bad policies that harm American production.
Nearly 230,000 Texans and their families are working hard every day in upstream jobs to safely produce affordable energy for all. That’s the story we will continue to tell.
PBPA: What is something that has surprised you as you have served in this capacity?
Craddick: I’m not surprised that Texas producers went toe-to-toe with OPEC and beat them. I’m not surprised that when federal trade regulations were eliminated, Texas producers made the United States the world’s number one producer of oil. And I’m not surprised that Texas producers continue to be proactive and find solutions to complex challenges like water, flaring, and seismic concerns. We work hard at this agency to meet the level of innovation that provides our regulated community with the certainty they need to make smart capital and employment decisions in Texas.
PBPA: Can you describe what the impact of a successful oil and gas industry means for Texas taxpayers?
Craddick: If we just focus on the numbers, over 350,000 Texans are employed in the oil and gas industry in more than 11,000 different businesses. What’s more, the average salary exceeds $130,000 a year, with a total Texas payroll exceeding $46 billion. Beyond our overall economy, the Texas oil and gas industry funds a substantial portion of our state government with more than $14 billion in taxes and royalties paid in 2018, up 27 percent from 2017. That money pays for our public schools, higher education, public safety, roads, and water infrastructure.
PBPA: As a Permian Basin native, can you describe the changes you have seen over the years and how they compare to today’s operations?
Craddick: Innovation continues to drive down costs in the oilfield. With the repeal of the export ban, we have seen the true power of the energy industry competing and winning in the world market. Remember just a few years ago when OPEC tried to drive Texas and American shale producers out of business? Texas producers did what they do best; innovate and compete. Operators made production more efficient and cost effective. The Commission made sure they did it safely and look where we are now. That example illustrates that when government gets out of the way, the free market will lead to more competition and abundance for consumers.
PBPA: What do you anticipate as future challenges for the industry?
Craddick: Global challenges will always be a part of this industry. We’ve got to focus on what we can control. One of the most important ways to do that is to ensure that we put the right people in office who understand the importance of energy policy and how it impacts the industry. Overregulate and we drown the industry in red tape that kills jobs, drives up the cost of energy, and brings to a screeching halt the energy independence that has brought on a stronger national security.
When you hear candidates for the office of resident proposing radical schemes like the Green New Deal, what they’re really telling you is they want government control of the energy industry. These radical plans will kill jobs, cost more than $93 trillion, and be funded by raising taxes and taking money out of the pockets of hardworking Americans. I’m working to ensure that message is rejected. Americans from coast to coast depend on Texas’ oil and gas industry to provide affordable, abundant energy that provides power, plastics, and the chemicals we all need for modern living.
Over the past 100 years, Texas energy producers have stepped up time and again to preserve our freedoms and fuel our nation’s success. That is why our policies must preserve the industry’s access to free markets, encourage competition, and foster innovation.