Election 2016: What’s at Stake for Oil and Gas?

 

Election season is always an uneasy time for the oil and gas industry, and this year is no exception. After all, government regulations can change the course of an energy market seemingly overnight. With this in mind, it’s good to know what issues might affect operators in the coming years.

Local and State Legislation: In spite of the positive economic impact fracking has in oil-producing areas, the technique has increasingly become the target of local and state legislators. Colorado recently proposed new restrictions on fracking, garnering more than 200,000 signatures in support of regulations that would stipulate how and where the technique can be performed. These proposed regulations would essentially grant local governments the authority to supersede statewide energy legislation, and many oil and gas insiders view Colorado as a potential indicator of nationwide trends.

Natural Gas and Environmental Concerns: Although natural gas is widely recognized as the cleanest of the fossil fuels, many environmental activists oppose efforts to expand its use due to the role of fracking in natural gas production. The current election cycle will be a pivotal moment for this and other hot button environmental issues, including renewable energy subsidies and greenhouse gas emissions.

Exports: Prior to 2015, federal legislation limited the ability of US firms to export crude oil and related products. Last year, the ban on these exports was revisited and President Obama lifted restrictions on US crude oil exports. With the deregulation of Mexico’s refined fuels market and production concerns in Africa, the future may be bright for US exporters.

Oil and gas isn’t just a commodities market anymore, and in today’s complex regulatory environment, it is more important than ever before that operators are aware of the effect of government regulation in energy markets. One Cypress Energy has helped operators through lean years and fat years, and whatever the outcome, you can count on our experienced oil and gas advisors to help you make the most of your resources.

Click here to view One Cypress Energy’s line of Advisory Solutions, including back office and in-field support services, asset marketing, bankruptcy guidance, and legal consulting. Comment below about the issues that you are keeping an eye on this election cycle.

 
All the best,
Scott Phipps