Texas Railroad Commission vs. OPEC: Oil and Gas Economy Analysis

This report provides a comparative analysis of the Texas Railroad Commission (RRC) and the Organization of the Petroleum Exporting Countries (OPEC) within the context of the oil and gas industry. The introduction highlights the RRC's role as a state agency regulating the oil and gas sector in Texas, while the main body delves into the establishment, functions, and evolution of the RRC, contrasting it with OPEC's international role in setting oil prices and coordinating petroleum policies among its member countries. The report examines the differences in their scope, with the RRC focusing on state-level regulation and OPEC operating at a global scale. The conclusion emphasizes the distinct nature of the two entities while acknowledging their shared involvement in the oil and gas industry. The report references key academic and online resources to support its analysis.

Historical Economy of
Oil and Gas

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Texas Railroad Commission is a commission which is a state agency and liable to
regulate the oil and gas sector in which pipeline safety, gas utilities and safety in liquefied
petroleum gas are considered. This agency is called Railroad Commission of Texas and also
known as RRC .
MAIN BODY
Texas Railroad Commission was established by Texas Legislature in year 1981. It is the
oldest regulatory agency of the state and started its work as the efficiency movement of
progressive era. It is concerned with the practical implementation of the plans rather than
ideological affair. In oil and gas industry it has taken account manufacturing in other states, in
result bringing total available supply of resources (Baumeister and Peersman, 2013).
It works with a regulated industry in order to enhance ability to execute business, productivity,
sharing best practices and recording and measuring consumer complaints. It is very important for
all the organisations involved in mining of oil and gas to follow the regulations of Texas rail
board commission so that they may run their business effectively. The products that are sold to
the customers are manufactured according to the market demand to meet customers need
(Kubursi, 2015).
Now it is no longer has any jurisdiction to monitor railroads in Texas. All the
responsibility of this agency has been transferred to other agencies. When it was established it
was charged with the oversight of all the rail sector. Now all the responsibilities and functions
are transferred to various other agencies. Legal authorities of the nation are willing to change the
name of this commission to better reflect the current authorty of the country. Government has not
passed the date tp the legistaltion. There are main functions of this commissions all of them ar
explained below:
 It is concerned with the environment and natural resources.
 Focused on with the safety of personal and community.
 It provides support to enhance development and economic vitality for the enhancement of
Texans (Omeje, 2017).
It was definitely unique as earlier there were no agency to regulate the industry of oil and
gas and it has helped the government to control and monitor all the activities that are performed
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by organisations under this sector. It has also set a standard for all the firms that they should
follow the rules and if they are not able to follow than a strict action will be taken for them. This
may leave negative impact on the business and its activities as well as profitability. It is really
very important for the companies to run and operate their business according to the policies of
the government. All the firms need to gather information of all the elements that may affect their
business in future so that effective plans can be formulated in order to ignore the same (Maggio
and Cacciola, 2012).
OPEC stands for organisation of the petroleum exporting countries which is an
international organisation and operate its business in 15 different nations. It was founded in year
1960 in Baghdad. For the first time the intergovernmental organisation has five members who
are Venezuela, Iran, Saudi Arabia, Iraq and Kuwait. Its head quarter is in Vienna Austria. All the
members of the commission sit together and decide the market price for oil and gas items. The
missions of the organisation is to unify and coordinate the petroleum policies of all the member
countries of their directive firm (Difference between OPEC and Texas rail road commission,
2018).
OPEC and Texas rail road commission both are different from each other but are involved in
same type of activities at different levels. As OPEC is concerned with the national or
international level petroleum control in the organisation and Texas rail road commission is the
regulatory authority at state level in which all the activities of oil and gas industry are evaluated.
OPEC control global supply to key the prices high and other one is responsible for the states
only.
CONCLUSION
From the above project report it has been concluded that OPEC and Texas rail road
commission are totally different form each other because one is concerned with local activities
and another is concerned with global activities. But there is only one similarity in both of them is
that they belong to same sector or industry which is oil and gas industry. All the operations that
are executed by the firms are monitored and evaluated under supervision of professional
involvements of them in the tasks.
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REFERENCES
Books and Journals:
Baumeister, C. and Peersman, G., 2013. Time-varying effects of oil supply shocks on the US
economy. American Economic Journal: Macroeconomic. 5(4). pp.1-28.
Kubursi, A., 2015. Oil, Industrialization & Development in the Arab Gulf States (RLE Economy
of Middle East). Routledge.
Maggio, G. and Cacciola, G., 2012. When will oil, natural gas, and coal peak?. Fuel. 98. pp.111-
123.
Omeje, K., 2017. High stakes and stakeholders: Oil conflict and security in Nigeria. Routledge.
Online
Difference between OPEC and Texas rail road commission. 2018. [Online] Available through:
< http://www.kut.org/post/how-texas-railroad-commission-was-blueprint-opec >
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