CO Fracking Initiative | Russell T. Rudy Energy LLC
Advances in horizontal drilling and hydraulic fracking made the shale revolution in the U. S. possible. Although fracking is a 1940’s technology, adapting it to shale formations enabled operators to exploit previously known, but uncommercial, reserves in areas such as the Bakken shale in the Williston Basin. Unfortunately, fracking is an emotionally charged issue. The city of Denton, Texas, passed a referendum that would have banned the practice within the municipality. However, the state legislature passed a bill which pre-empted the local initiative. New York has a state-wide ban on the practice.
Now, the industry is threatened by two initiatives in Colorado which could have significant implications at the state and national levels. “Oil Voice” reports that Initiative 75 would enable local governments to regulate fracking in a more stringent manner than the state mandates. Initiative 78 would prohibit fracking within 2,500 feet of houses, parks, schools, playgrounds and clean water sources.
Colorado has significant natural gas reserves, and ranks 7’th nationally in term of both oil and gas production. The industry there relies heavily on fracking. Low energy prices and onerous fracking restrictions would likely have a serious, negative effect on oil and gas production.
The proposed limits on fracking would have severe consequences for the state. Possibly 140,000 jobs and $217 billion could be lost over the next 15 years. At the national level, these ballot initiatives could set a dangerous precedent which could further damage an already vulnerable industry.
“Oil Voice” thinks that the presidential election could also have a significant impact on fracking’s future. Donald Trump favors fracking, but sees this as a states’ rights issue and thinks Colorado should be able to decide as it sees fit. As Secretary of State, Hillary Clinton supported fracking. However, she also favors increased investment in renewable energy and has recently outlined a series of fracking “conditions”.
Clearly the eyes of the industry will be on the outcome of the November 8 elections.
To read the article in its entirety, please go to http://www.oilvoice.com/n/Frackings-Future/0685ac5a0c05.aspx .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
