The Texas Oil Production Cut Plan Is Dead

Ryan Sitton, the Texas Railroad Commissioner who first floated the idea of state-mandated oil production cuts, has thrown in the towel after failing to convince his two co-commissioners of the need for mandatory cuts. Sitton first suggested that Texas could join OPEC and other producers in curbing oil production purposefully in March. However, the industry had a mixed reaction to the proposal. While some backed it, such as Parsley Energy and Pioneer Natural Resources, others were firmly against it, notably the supermajors Exxon and Chevron, which have more abundant cash resources to hold out during the oil price crisis. Yet it seems the industry is already cutting production at fast enough rates that would negate the need for a mandatory output curb. “This is dead,” Sitton told Reuters about his production cut plan. “What we should have done six weeks ago now would no longer have the right impact. We lack the leadership between the three commissioners to get that done.”...MORE