Will cutting Texas oil production in the coronavirus era save the industry or kill it?
Beyond the differences of opinion in the industry, left unanswered were questions about how production could be cut in a way that was fair to all producers, said Josiah Neeley, Texas director for the Washington-based R Street Institute which opposes production cuts.
Mandated cuts in production are known in the oil industry as proration. Texas has not engaged in proration since 1973, Neeley said.
“It did seem like, even beyond the argument about whether the case (for cutting production) is good or not, the logistical problems involved in making it work seemed kind of insurmountable,” Neeley said in a phone interview.