Is That OPEC Cutting the Oil Supply? No, It’s Canada
Yes. Mexico is one of eleven oil-producing countries including Russia and Oman that joined with OPEC to cut production last year to support prices. In the U.S., no existing law would give the U.S. federal government authority to order production cuts, according to Josiah Neeley, energy policy director at R Street, a Washington-based public policy research organization. Several states “in theory” have such authority but chances that would be exercised are “basically nil.” Throughout the 1930s, 1940s and 1950s, the Texas Railroad Commission played the role that OPEC plays today by mandating production curtailments to prevent oversupply. The agency eventually became a model for OPEC.
