Texas regulator urges state to consider oil output limits as prices crash

Texas should consider production limits for oil companies in an effort to stabilize crashing oil prices, one of three commissioners at the state's oil and gas regulator said Friday.

Oil executives and regulators are reaching out to the Trump administration to float the idea of cutting Texas oil output 10% if the federal government could negotiate with Saudi Arabia and Russia to do the same, said Ryan Sitton, one of the three elected members of the Texas Railroad Commission, which regulates oil and gas.

Texas has not limited oil production since the early 1970s but regulators have the authority to do so. U.S. oil prices are down more than 60% this year in the face of falling demand from the coronavirus and an oil price war between the Saudis and Russians.