Railroad Commission Sets Tentative Date For Oil Production cut Hearing
Railroad Commission of Texas Commissioner Ryan Sitton said April 1 that he's hopeful the oil and gas regulatory agency can hold a hearing to consider production cuts on April 14.
The Commission received a request March 30 to hold a public inquiry as to whether or not the agency should take the extraordinary action of setting limits on Texas oil production. The last time the Commission did so was in the 1970s.
Sitton said during a web presentation that commissioners have set a tentative date of April 14 to hold such a hearing, during which they will collect public feedback and input into whether setting production limits is a good idea and discuss how the nation and global community might come together to help the oil industry. The Commission could take a vote on whether to set those limits during its meeting on April 21, Sitton said.
Sitton said he is is a "free market guy," but "these are extraordinary times."
During his presentation, he predicted that it could take oil markets up to two years to recover from the COVID-19 pandemic, which has stopped travel and forced consumers inside, lowering demand at a time when Saudi Arabia is ramping up production. North American oil futures were trading at around $20 per barrel on April 1.