Texas regulator aims to wrangle oil output cuts from Saudis, Russia

Jennifer Hiller | Reuters


The Oklahoma Energy Producers Alliance this week urged the state’s energy regulator to take steps to curtail crude oil production as oil prices in the state fell below $20 a barrel.

The Alliance also asked regulators to “stop authorizing, permitting and approving the drilling of wells which result in ‘economic waste,’” according to a letter sent to the three commissioners for of the Oklahoma Corporation Commission.

John Kilduff, a partner at Again Capital in New York, said that Texas regulators could avoid the political hazard of ordering production cuts by enforcing natural-gas flaring rules already on the books, which the state has not done.