In the case of Petroleum Exploration, Inc. v. Public Service Commission et al., 1937, the U.S Supreme Court ruled in favor of the Public Service Commission (PSC). The dispute arose when Petroleum Exploration, Inc., a Kentucky-based oil company, challenged an order by PSC that required it to obtain a certificate of public convenience and necessity before transporting natural gas across state lines for sale. The company argued that this requirement was unconstitutional as it violated their rights under the Commerce Clause and Due Process Clause of the Constitution. However, after careful consideration, the court upheld PSC's order stating that such regulation was within its power since transportation and sale were part of 'intrastate' commerce which falls under state jurisdiction rather than federal jurisdiction according to existing laws at that time. Therefore, they concluded there was no violation against either clause mentioned by Petroleum Exploration Inc. The ruling underscored states’ authority over intrastate commerce activities while also highlighting how companies must comply with local regulations even if their operations extend beyond one particular state’s borders.

In the dissenting opinion for Petroleum Exploration, Inc. v. Public Service Commission et al., Justice McReynolds argued that the majority's decision was a departure from established principles of constitutional law and an unwarranted extension of governmental power over private business operations. He contended that the Ohio statute in question, which allowed state regulation of natural gas production rates, interfered with interstate commerce and violated property rights protected by due process under the Fourteenth Amendment. The justice believed this case represented a dangerous precedent where states could regulate businesses without clear justification or reasonable limits on their authority. Furthermore, he expressed concern about potential negative impacts on industry development and economic growth resulting from such excessive regulatory control.