Speaking at the IHS CERA’s annual conference in Houston on Wednesday, Colorado’s chief executive offered these comments on the issues surrounding oil and gas regulations:
State vs. Federal Regulation: “Most governors are going to argue that it should be a state responsibility …we can create regulations that are less onerous but more effective than blanket regulations that come out of Washington.”
State vs. Local Regulation: “If each county had a different set of regulations it would be very tough on our industry.”
Hydraulic Fracturing: “Transparency is a big part of the anxiety. If you look at the mechanics of horizontal drilling with fracking, it’s not hard to be able to demonstrate that we can drill for oil and gas and protect aquifers,” said Hickenlooper, a former geologist. “There have only been a couple of instances of contamination, and that’s because of shoddy well construction. Maybe we need to increase fines.”
The Governor added … that issues around fracking fluids have been “put to bed.” Now the issues are how well the wells are cemented and methane that escapes into the air.
On other forms of energy: Hickenlooper said he’d like to see tax credits for wind energy extended, though he advocates a five-year phase-out period for the subsidies.