Regulatory agencies in Texas and Oklahoma both opted not to impose limits on crude oil production within their states despite a historic drop in prices and shrinking storage availability. The Oklahoma Corporation Commission took no action in May after hearing proposals to declare some oil production in the state as economic waste, or on an industry trade group's recommended plan that included mandated output cuts. That hearing closely followed a Texas Railroad Commission decision not to mandate oil production cuts, ending a month-long debate about whether they would wade into global oil politics for the first time in 50 years as crude prices cratered. The severe price downturn in April had prompted Commissioner Ryan Sitton to push the idea of production cuts after two companies asked for the state to mandate 20% curtailments, or 1 million barrels. Sitton promoted the curbs on Twitter and television and won audiences from OPEC and Russian energy leaders. But a motion to consider widespread production curbs was dismissed by a 2-1 vote. Texas and Oklahoma can curb oil production to prevent waste of the states' natural resources, but stopping production takes time and must be done carefully to avoid damaging future output. Shut-ins also can cause an oil and gas producer to lose their right to drill under many leases. "The industry and the market move a lot faster than we can as a regulatory body," Texas Railroad Commissioner Christi Craddick said. Texas is the top U.S. oil producing state. Oklahoma ranked fourth in 2019 behind North Dakota and New Mexico, according to the U.S. Energy Information Administration.
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