Oil prices

[mugofbeer]

Anadarko may have determined much of their Colorado drilling potential would be wiped out by new legislation below:

The future of drilling in Colorado is very much up in the air after the passage of sweeping new drilling regulations. The regulations give local communities say over the state on where and whether to allow O & G drilling in the state. This was passed by the state legislature and signed into law by the new governor despite twice being voted down by relatively wide margins. The likelihood of many lawsuits as a result of this new law is significant since a last minute provision was put in requiring the local governments to have to explicitly prove why certain drilling sites should be banned.

https://patch.com/colorado/denver/ho...lorado-oil-gas

[BG918]

Anadarko may have determined much of their Colorado drilling potential would be wiped out by new legislation below:

The future of drilling in Colorado is very much up in the air after the passage of sweeping new drilling regulations. The regulations give local communities say over the state on where and whether to allow O & G drilling in the state. This was passed by the state legislature and signed into law by the new governor despite twice being voted down by relatively wide margins. The likelihood of many lawsuits as a result of this new law is significant since a last minute provision was put in requiring the local governments to have to explicitly prove why certain drilling sites should be banned.

https://patch.com/colorado/denver/ho...lorado-oil-gas

Interesting, this may indeed be the beginning of a pull out of Colorado to focus on greener pastures.

[catch22]

Anadarko may have determined much of their Colorado drilling potential would be wiped out by new legislation below:

The future of drilling in Colorado is very much up in the air after the passage of sweeping new drilling regulations. The regulations give local communities say over the state on where and whether to allow O & G drilling in the state. This was passed by the state legislature and signed into law by the new governor despite twice being voted down by relatively wide margins. The likelihood of many lawsuits as a result of this new law is significant since a last minute provision was put in requiring the local governments to have to explicitly prove why certain drilling sites should be banned.

https://patch.com/colorado/denver/ho...lorado-oil-gas

Giving power to the local governments to decide what is best for their community seems like what most conservatives have been asking for. Not sure why they hate this bill.

[mugofbeer]

Giving power to the local governments to decide what is best for their community seems like what most conservatives have been asking for. Not sure why they hate this bill.

The opposition is far from being exclusive to conservatives. ALL former governors oppose it as well as a whole littany of Democrat business people and politicians including Democrat former Secretary of the Interior, Henry Gonzales.

Colorado has approximately 230,000 jobs from O & G so it's pretty easy to see how the restrictions will kill off the industry as well as horribly damage the state's economy. Oil & Gas accounts for about 4% of the entire state budget. Losing this revenue will greatly damage schools and maintenance for the parks and open spaces. It's recognized as a very short sighted business killer and, I believe, Anadarko may be just the first.

The state question would have restricted new O & G drilling to approximately 2% of land in the state by imposing restrictions such as a minimum distance from O & G drilling of 2500 feet, basically half a mile between any 2 wells, between a well and a home, business or school as well as any public lands. This would have pretty much eliminated drilling in the western 2/3 of the state where the most untapped O & G are located and prevented private owners from benefitting. Even in Weld county which has a huge amount of open space (NE of Denver), to space 2500 feet from virtually any type of dwelling would pretty much eliminate the entire county (which produces more O & G than any country in Colorado).

The new bill isn't quite that restrictive but it's going to end up costing cities and towns hundreds of millions in litigation between oil companies, landowners and towns who impose restrictions. The main problem will be if/when counties impose restrictions. It's really an issue of new voter influx from the west coast.

[PhiAlpha]

Giving power to the local governments to decide what is best for their community seems like what most conservatives have been asking for. Not sure why they hate this bill.

It has potential to deny mineral owners of their constitutional property rights so that has a lot to do with why conservatives would be opposed to it but conservatives generally support less regulation on industry so that too.

[catch22]

It has potential to deny mineral owners of their constitutional property rights so that has a lot to do with why conservatives would be opposed to it but conservatives generally support less regulation on industry so that too.

If there are enough property owners or voters who want to exercise their mineral rights by selling them to an oil company, I’m sure they will show up to the polls to elect people who represent them and allow it in the community. This is literally bringing power to the individual communities and not a sweeping regulation that affects everyone. If the community doesnt want that industry drilling in town then they can only blame the loss of jobs and tax revenue on themselves. Or they may like it that way despite the loss of jobs. Power to the communities is a good thing. Big government and big business doesn’t have the communities best interest in mind. They are only concerned with what makes them money. It’s good to give the communities some power against these big companies.

[Plutonic Panda]

If there are enough property owners or voters who want to exercise their mineral rights by selling them to an oil company, I’m sure they will show up to the polls to elect people who represent them and allow it in the community. This is literally bringing power to the individual communities and not a sweeping regulation that affects everyone. If the community doesnt want that industry drilling in town then they can only blame the loss of jobs and tax revenue on themselves. Or they may like it that way despite the loss of jobs. Power to the communities is a good thing. Big government and big business doesn’t have the communities best interest in mind. They are only concerned with what makes them money. It’s good to give the communities some power against these big companies.

What if you are a property owner that has oil underneath and you need the money but you’re in a county where the majority of property owners either does not need the money from their untapped oil, is an environmentalist who is against it, or doesn’t have any?

[chuck5815]

I'm not quite sure how Colorado gets around the Commerce Clause. A lot of thorny constitutional issues in play here.

[baralheia]

What if you are a property owner that has oil underneath and you need the money but you’re in a county where the majority of property owners either does not need the money from their untapped oil, is an environmentalist who is against it, or doesn’t have any?

Directional drilling.

[catch22]

What if you are a property owner that has oil underneath and you need the money but you’re in a county where the majority of property owners either does not need the money from their untapped oil, is an environmentalist who is against it, or doesn’t have any?

My neighbors don’t like my live concerts I play at 3am on my back porch; thus the community has noise and nuisance ordinances. If there’s enough of us that like having the concerts we will vote to enact changes to allow us to play live music at all hours of the night.

Sucks for us...

[mugofbeer]

My neighbors don’t like my live concerts I play at 3am on my back porch; thus the community has noise and nuisance ordinances. If there’s enough of us that like having the concerts we will vote to enact changes to allow us to play live music at all hours of the night.

Sucks for us...

There are a lot of issues at play. In Colorado, the people who are near the drilling are almost exclusively people moving to new home construction venturing onto grazing or farmland where O & G wants to drill. I am understanding of people not wanting a well right next to their houses but the proposals being brought out by some of the advocates will pretty much eliminate drilling entirely. There will be multiple lawsuits before this is over.

tHAT'S NOT

[Plutonic Panda]

My neighbors don’t like my live concerts I play at 3am on my back porch; thus the community has noise and nuisance ordinances. If there’s enough of us that like having the concerts we will vote to enact changes to allow us to play live music at all hours of the night.

Sucks for us...

That is an apples to oranges comparison.

[catch22]

If it materially affects the city, the city (citizens) should have a say. That’s not a bad thing. I’m sure most of the people against this bill live in HOA’s and want to tell their neighbor what color their siding needs to be. What’s the difference?

[Plutonic Panda]

If it materially affects the city, the city (citizens) should have a say. That’s not a bad thing. I’m sure most of the people against this bill live in HOA’s and want to tell their neighbor what color their siding needs to be. What’s the difference?

Well I can’t really say I’m against the bill because I don’t live in Colorado. But I do not support it nor do I support overreaching homeowners association’s.

In what ways with this negatively affect people? Where do we draw the line at claiming someone else shouldn’t do something because it affects another person? I don’t see someone drilling for oil in that category.

[catch22]

That is an apples to oranges comparison.

Kind of. But not really. Municipalities should have the right to regulate what kind of activity is happening within its limits. If they want concerts at 3am or drilling rigs in parks that is their right to decide. They are within their right to allow it, or disallow it. I don’t see the problem. Right now they are not within their right to reject it, even if the citizens don’t want it. That’s not a free government by the people or for the people.

[Plutonic Panda]

Kind of. But not really. Municipalities should have the right to regulate what kind of activity is happening within its limits. If they want concerts at 3am or drilling rigs in parks that is their right to decide. They are within their right to allow it, or disallow it. I don’t see the problem. Right now they are not within their right to reject it, even if the citizens don’t want it. That’s not a free government by the people or for the people.

Yeah that’s a good point. I’m kind of torn on this.

[chuck5815]

Kind of. But not really. Municipalities should have the right to regulate what kind of activity is happening within its limits. If they want concerts at 3am or drilling rigs in parks that is their right to decide. They are within their right to allow it, or disallow it. I don’t see the problem. Right now they are not within their right to reject it, even if the citizens don’t want it. That’s not a free government by the people or for the people.

No. Imagine if every county and municipality in Oklahoma tried to regulate oil and gas activity. You'd have potentially 700 different sets of regulation to deal with instead of only dealing the Oklahoma Corporation Commission as it is now.

And let's not forget that this really has nothing to do with the health and welfare of Colorado's citizens. This is all about global warming, and the public health argument is simply pretextual.

[catch22]

No. Imagine if every county and municipality in Oklahoma tried to regulate oil and gas activity. You'd have potentially 700 different sets of regulation to deal with instead of only dealing the Oklahoma Corporation Commission as it is now.

And let's not forget that this really has nothing to do with the health and welfare of Colorado's citizens. This is all about global warming, and the public health argument is simply pretextual.

So why is O&G special? Why do the citizens and other businesses have to comply with different regulations depending on their city, county, and state but O&G does not?

My company has to comply with federal, state, and local ordinances all of which are different for all 49 states and 48 countries we operate in. It’s how it works. Why does O&G think it’s exempt from local law?

[chuck5815]

So why is O&G special? Why do the citizens and other businesses have to comply with different regulations depending on their city, county, and state but O&G does not?

My company has to comply with federal, state, and local ordinances all of which are different for all 49 states and 48 countries we operate in. It’s how it works. Why does O&G think it’s exempt from local law?

It’s not special. There are plenty of state laws that are preempted by federal law. (See, e.g. ERISA).

And there are plenty of instances where a particular state chooses to completely occupy a regulatory field, preempting municipalities from attempting to regulate a particular set of issues. Oil and gas regularly falls into this category, in a number of states, because regulating it requires a high level of expertise.

The average municipality doesn’t have the knowledge base to effectively regulate the industry. Surely you wouldn’t force every small town in the state to hire a petroleum engineer and geologist?

Or would you?

[catch22]

It’s not special. There are plenty of state laws that are preempted by federal law. (See, e.g. ERISA).

And there are plenty of instances where a particular state chooses to completely occupy a regulatory field, preempting municipalities from attempting to regulate a particular set of issues. Oil and gas regularly falls into this category, in a number of states, because regulating it requires a high level of expertise.

The average municipality doesn’t have the knowledge base to effectively regulate the industry. Surely you wouldn’t force every small town in the state to hire a petroleum engineer and geologist?

Or would you?

They don’t have to hire anyone unless they decide it’s necessary. I’d bet 99% of communities would leave things alone. However, if they decide to ban it they can research options into banning it. It’s quite literally restoring power to the communities. As you say, many states have powers that they don’t use. What’s wrong with extending that freedom to the individual communities?

[mugofbeer]

No. Imagine if every county and municipality in Oklahoma tried to regulate oil and gas activity. You'd have potentially 700 different sets of regulation to deal with instead of only dealing the Oklahoma Corporation Commission as it is now.

And let's not forget that this really has nothing to do with the health and welfare of Colorado's citizens. This is all about global warming, and the public health argument is simply pretextual.

Well, in Colorado its both. There have been 2 cases of homes exploding because a leaking but unmapped gas pipeline was built near or under a house andvraw gas leaked into the house. These were both new construction near the pipelines and should not have been built there but the pipelines were forgotten. Overall though, it's just anti drilling sentiment.

[chuck5815]

Selling the Corporate HQ (https://www.loopnet.com/Listing/701-...y-OK/16310080/), conducting layoffs, and (allegedly) telling many of the remaining employees to work from home.

If this isn't a case study for economic diversification, I don't know what is. This City needs to attract more high-tech jobs.

[sooner88]

Selling the Corporate HQ (https://www.loopnet.com/Listing/701-...y-OK/16310080/), conducting layoffs, and (allegedly) telling many of the remaining employees to work from home.

If this isn't a case study for economic diversification, I don't know what is. This City needs to attract more high-tech jobs.

Good chance this is sold and replaced by a new oil and gas company. Chaparral has been on the downhill slide for awhile and been divesting at a pretty rapid pace.

[gopokes88]

It's a blood bath out there right.

Concho lost 25% of it's market value in a single day on a botched spacing test. Whiting fell 40% on all sorts of bad numbers.

There's a lack of belief the shale model can ever be economical without being perpetually cash flow negative.

[gopokes88]

Good chance this is sold and replaced by a new oil and gas company. Chaparral has been on the downhill slide for awhile and been divesting at a pretty rapid pace.

We'll see. There's a huge amount of problems with the stack right now. The rig count has fallen by 50% in the past 12 months.

You could buy all of chaparral for like $1700 an acre including debt right now. and no takers.