Oil & Gas Conservation Laws (Oil & Gas 4.1)

The rule of capture creates a race for oil production to ensure your neighbors don't take your share of the oil and gas under the ground in your area. But over time states and the federal government have placed limits on drilling oil wells and on how much you can produce. These laws help preserve reservoir pressure to maximize oil and gas production and they limit the economic and environmental damage from extra unnecessary wells. As we discuss, they can also slow production to ensure that oil producers spread out their production over time to maximize its value.
Some of the challenging concepts in this video, such as the theoretical case for slowing oil & gas production and how that could be used to reduce flaring and economic harm while economically benefiting the oil and gas industry, are more fully explained in this video: • State Energy Cartels: ...
Class 4; Video 1
Citations:
James W. Coleman, The Third Age of Oil and Gas Law, 95 Ind. L.J. 389 (2020), scholar.smu.edu/cgi/viewconte...
pp. 410-412
James W. Coleman, State Energy Cartels, 42 Cardozo Law Rev. 2234 (2021) scholar.smu.edu/cgi/viewconte...
John S. Lowe, Owen L. Anderson, Christopher S. Kulander, Monika U. Ehrman, Burke W. Griggs, James W. Coleman, Cases & Materials on Oil & Gas Law, faculty.westacademic.com/Book...
pp. 663-685