6. The Texas Railroad Commission’s Regulatory Power
The Texas Railroad Commission (RRC), established in 1891, has played a pivotal role in regulating the state’s oil and gas industry. In the 1930s, amid the East Texas oil boom, the RRC implemented prorationing—a system that set production limits for each well to prevent overproduction and stabilize prices. This approach effectively managed the flow of oil, influencing global oil prices for decades. Notably, the Organization of Petroleum Exporting Countries (OPEC) modeled its production control strategies after the RRC’s prorationing system (tshaonline.org).
