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Exploring the politics of the Texas Railroad commissions regulation of texas oil and gas from 1917-1941 - Research Paper Example

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Name: Institution: Instructor: Date: Texas Railroad Commissions Politics The commission is among the most influential agencies in the U.S. The agency underwent several reforms to transform it to regulate new industries. The adaptations featured in reforms experienced during the America’s federalism system…
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Exploring the politics of the Texas Railroad commissions regulation of texas oil and gas from 1917-1941
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Exploring the politics of the Texas Railroad commissions regulation of texas oil and gas from 1917-1941

Download file to see previous pages... In the 1920s, there was a sporadic pattern of cooperation between the state and federal governments. Tensions were high in the coordination of the state activities and those of the federal government over the control of resources. Mandates of the commission The commission is the central state agency with regulatory jurisdictions over the operations of the oil and natural gas industry. It also has jurisdictions over pipeline transporters in the nation. The commission controls the operations of the natural gas and hazardous liquids industry in the country. It controls natural gas utilities and the LP gas in the nation. All coal and uranium-mining operations in the U.S. are under the commission’s mandate1. The commission controls all the research and education aimed at encouraging the use of LP gas as an alternative energy form. Its operations are under the federal legislations such as the pipeline and safety act. According to the Texas archives, the commission is the first to be set in the country2. The commission’s regulatory roles are responsible for the prevention of waste of resources. It serves to protect property rights in environment. The commission operates and maintains plat and survey maps that provide information on oil and gas reservoirs in Texas. Protection of the correlative rights of interest owners’ rights is a vital role of the commission. The commission also ensures safety in the operations of gas and oil including that of hydrogen sulfide. It has a mandate to regulate hazardous pipelines. Material and natural gas pipelines should be clean and conform to standards. Oil supplied to the population should be safe and supplied at a reasonable price. Regulation of surface coal mining is under the commission’s jurisdiction. Oil boom in Texas in the 1930s Also referred to as the Gusher age, the east Texas oil boom was a historic time of economic prosperity, experienced in the state at the onset of the 20th century3. Beaumont, Texas, experienced an escalated production level of oil after drilling companies defied the commission’s conservation orders. High oil production promoted the local economy of the state and caused escalated wealth circulation. There was massive regional development in states around Texas, as well. Oil boom promoted serious industrialization and development in the U.S. The incident was unpredicted since oil gushed out when drillers almost declared failure to discover oil. This made Texas the greatest oil producing state in the nation. In October 9, oil discovery at Kilgoire strike was a success. The oil boom effect was extensive across sectors of the economy. A crash in the stock market was a serious impact of the spill, for instance. Mass unemployment was the ultimate effect of the stock crash. Independent oil firms exploited the boom to produce massive amount of oil. National oil prices changed significantly and affected the oil market in the country. The cost of oil per barrel dropped extensively between 1930 and 1931. Independent oil firms’ high production level destabilized the world oil markets. East Texas oil reserves produced a large a massive amount of oil comparable to the total oil production in the country. The depression turned worse in 1931 and 1932 and the Hoover administration seemed incapable to solve the situation. Farmers experienced the effects of the depression and business declined all over the nation. Regulation too ...Download file to see next pagesRead More
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