Proration, or production "quotas," of Texas oil wells worked very well for 43 years; the Texas Railroad Commission controlled the price of worldwide oil by managing supply that was commensurate with demand. There was little resource waste during this period, we preserved bottom hole pressure and practiced proper reservoir maintenance; everyone's correlative rights were protected and Texas did not piss off hundreds to billions of dollars (like the shale oil industry is doing) on unnecessary wells.
The price of oil was very stable during this period and finding and production costs were low. The American oil and gas industry thrived because it was, hold on to your knickers...profitable. Tax revenue from oil and natural gas provided Texas with the best system of higher education in the nation.
The greatest benefit of proration was that it conserved oil and gas resources for the future, resources that helped us stave off OPEC's complete control over the world market in ensuing years.
What's different today than 89 years ago?
Nothing, save the fact that we have less resources to waste and an even greater reason to act with our long term future in mind.
Today is the day the three Texas Railroad Commissioners vote on proration. For the sake of our nations long term energy security let us all hope and pray they make the right decision.