Texas voters reelect conservative Craddick to lead oil regulator
Christi Craddick reelected to lead Texas oil regulator for another six years
Texas oil production has ballooned since the start of Craddick's tenure in 2012
Pressure mounts on the Railroad Commission to handle orphan wells issue
By Georgina McCartney
HOUSTON, Nov 6 (Reuters) -Texas on Tuesday reelected conservative incumbent Christi Craddick as chairman of the state's oil regulator, marking her third term in the position and a win for the industry that has seen production surge during her tenure.
Texas, home to the Permian Basin, is the largest oil producer in the United States, pumping some 5.8 million barrels per day (bpd), according to the latest government figures. The Texas Railroad Commission (RRC), which Craddick will chair for another six years, regulates the industry, overseeing everything from well permitting to pipeline safety.
Craddick, a Republican, defeated Democrat Katherine Culbert, Green Party member Eddie Espinoza, Libertarian Hawk Dunlap and Independent Richard McKibbin.
Craddick first took office in 2012, around the beginning of the U.S. shale revolution, which propelled the country to become the world's top oil producer.
Since then, Texas oil production has ballooned from an average 1.98 million bpd to hitting a record at 5.8 million bpd in August this year, according to the Energy Information Administration.
In her third term, Craddick will face mounting pressure from landowners, environmentalists and other industry groups on the issue of orphan wells, which have been drilled and abandoned by operators.
There were 8,376 orphan wells as of Oct. 31 across Texas, according to the RRC, though the actual number could be far higher.
"I would like the Commission to streamline orphan well plugging and abandonment, and adoption processes," said Reed Goodman, independent operator and owner of JayBird Resources, which has operations adjacent to the Eagle Ford shale play in South Texas.
The Railroad Commission has also come under fire recently after so-called zombie wells caused a series of well blowouts. Zombie wells are abandoned production sites that spring back to life and pollute the surrounding air, soil and groundwater.
Environmental groups also want RRC put a stop to routine flaring at oil wells, increase permitting fees to force oil companies to pay for the cleanup of orphan wells instead of the taxpayer, and to stop the storage of oil in areas that could contaminate groundwater.
Texas oil production hits record highs in 2024 https://reut.rs/4feJPcG
Reporting by Georgina McCartney in Houston; Editing by Liz Hampton and Matthew Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.