OPEC Born from Texas Railroad Commission Blueprint

The Texas Railroad Commission's innovative approach to regulating oil production in the 1930s served as a blueprint for the formation of the Organization of Petroleum Exporting Countries (OPEC) in 1960.

In the early 20th century, the U.S. experienced an oil boom in Texas and Oklahoma, but it was followed by a price crash due to oversupply.

The East Texas Oil Field discovery in 1938 led to a 40% supply of oil for the U.S. and 25% of global production, causing a massive price drop.

Venezuelan politician Juan Pablo Pérez Alfonzo studied the success of the Railroad Commission and saw its potential for international application.