Midstream companies nervous in Colorado as Democrats target drilling and pipelines

 

Not only are midstream companies in Colorado nervous about the goal of Democrats in control of their statehouse,but so are some in Oklahoma. That’s because the pipelines that could be targeted by anti-fossil fuel legislators carry oil from Colorado to Cushing, Oklahoma, the oil hub where crude prices are set.

The oil and gas industry escaped attempts by environmentalists last year to create tougher restrictions on drilling near homes and schools and businesses.

But in late December, the industry also heard from Colorado State House Speaker KC Becker, a Democrat from Boulder. In her opening speech to lawmakers, she highlighted the need to pass oil and gas legislation on health and safety and local control issues according to a report in the Colorado Sun.

“Oil and gas is gangbusters in Colorado and happening in more and more urban and suburban areas,” Becker said during a Dec. 19 conference call with Baird & Co. investment managers. “So, I think that this current legal framework really was written with different circumstances in mind.”

“There is still this overhang,” said Stacey Morris, director of research for Dallas-based Alerian, a market consultant focused on companies that move, process and store oil and gas. “What’s going to happen next? There is a ton of uncertainty.”

“I’m not out to screw oil and gas”

“I’m not out to screw oil and gas,” Becker said during the conference call, a transcript of which was obtained by The Sun.  “I think oil and gas can operate safely and profitably in Colorado while also considering neighborhood impacts, air quality impacts, so I don’t think saying ‘Hey, we want to decrease emissions’ means we’re screwing the industry.”

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