Does Oklahoma or the federal government limit the amount of oil or natural gas a well may produce?
OK Corporation commission sets the allowables for the wells.
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I listen to a lot of finance/econonomics type podcasts, and read up on what I can. One narrative that I’ve picked up on is the oil companies are sick and tired of the boom/bust cycles. They (apparently) are committed to trying to keep this cycle more stable by not wildly increasing production at the moment, aiming for only something like 5+ percent increase.
Just what I’ve heard, no expert.
Chris, What your saying makes a lot of sense. I think if we look at the economics of O&G over the last 20 years, better yet over the last 50 years, we would see exactly what you are hearing on those podcasts. Boom and Bust cycles make it pretty difficult to establish a stable business plan or ask for more investments. I would like to hear a lot more discussion on these reasons for fuel prices on the news than bringing politics into it all the time. Of course regulations can greatly affect the business model but I think the companies have a lot more control than they are given credit for. O&G are big players in world economics. Hope this opinion does not upset anyone. Just an observation.
That particular nugget I heard on a podcast called Macrovoices. It is run by a former hedge fund manager name Erik Townsend. I’ve been listening to it about 3 years I think. His largest focus is oil trading. He has been very on-target about the oil markets all through covid. Predicted what is going on today as soon as oil dropped back in March of 2020. All based on logic like difficulty in re-starting old wells, drops in investment, limits on supply, demonizing Big Oil, etc.
I’ve been very glad to have listened these last few years. He also predicted this current dip due to recession fears, but sees more upside in the the future. He has only missed on one thing that I remember: gold. Has admitted he missed on that, and isn’t sure when it will rise.
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Reminds me of my pool guy that told me he made $175K/yr doing online gaming. I asked why was he spending 45 minutes a week to clean my pool for $90/month. He got a blank look on his face & left.
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I hope your pool guy found his true calling. 
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