WASHINGTON, 30 APR – RIA Novosti. The Chairman of the Railroad Commission of Texas that regulates the oil production in the state, opposes the imposition of restrictions on production.
“I will vote against limiting oil production in Texas and will stick to free market principles,” wrote the Chairman of the Wayne Christian on Twitter.
His opinion, he explained in an article in the Houston Chronicle.
In particular, the head of the Commission noted that in 1950, the Texas controlled more than 20% of the world supply of oil, and today approximately 5%.
“with this in mind, the government has to reduce oil production by 20% throughout the state will not have a significant impact on world oil supplies. In addition, the industry is reducing production on their own. Allowing the free market to work, producers can determine what level of production is economically advantageous,” wrote Christian.
He noted that the resumption of the practice of regulation of production, from which the state withdrew in 1973, made all the major enterprises of the oil companies, particularly Texas Association of oil and gas (Texas Oil and Gas Association) and the Texas Alliance of energy producers (The Texas Alliance of Energy Producers).
So the Christian does not support the position of Commissioner Ryan Sitton who acts for the regulation of oil production to stabilize prices.
OPEC agree on 12 April on the reduction of oil production to 9.7 million barrels per day in may-June, 7.7 million in the second half of the year and 5.8 million next until the end of April 2022. Base count taken October 2018, but for Russia and Saudi Arabia taken 11 million barrels per day, from which by analogy with all is a decrease of 23%, 18% and 14% respectively. On individual terms insisted and Mexico: it reduces production of only 100 thousand barrels per day in may and June, the other 300 thousand for it please contract US.
