This assessment will cover the following questions:
- Critically explain reason behind the establishment of Texas Railroad commission.
- Analyse how Texas railroad commission is different from OPEC?
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 .
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 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).
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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.
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.
- 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.