03-20-2020, 02:16 PM
(03-20-2020, 01:09 PM)fenders53 Wrote: VBIN, I just read the TX Railroad Commission which regulates TX oil industry, is reaching out to OPEC for negotiations. Pretty sure CARTELS are illegal in the US. I don't know how you even begin to legally regulate US production when you have small companies facing bankruptcy. I am thinking they would have to play the environmental card and outlaw flaring or something similar. The global recovery would benefit from continued free oil so this is going to be very interesting if meetings do happen. I still have a bit of oil in my "retirement boat account" so I'm on your side.
It is interesting that it is the RRC talking to OPEC. I'm not sure that antitrust laws apply to state governments that set regulations. Congress can certainly override through its power to regulate interstate commerce, and the feds could take Texas to court (as I assume that Texas regulators seeking to fix oil prices through production regulations probably runs afoul of at least one existing federal statute), but any of those scenarios would require federal action to stay Texas' hand. Not sure I see that happening under this administration, and I suspect the talks are happening with tacit admin approval. We shall see.