REUTERS: New environmental regulations in Colorado have chilled investment in the state's oil and gas fields as companies grapple with how local officials will respond to a law giving them more power to restrict energy production.
New Mexico, the state ranked third in production volume, has also sought to rein in energy development with new rules targeting emissions from hydraulic fracturing. California, another top producer, is considering legislation that would sharply curb oil drilling. Many states have opposed Trump administration efforts to expand offshore drilling near their coastlines, and environmentalists nationally have blocked or slowed new pipelines with protests and lawsuits.
That proposal would have effectively put most of the state's land off limits for oil production by imposing bigger buffer zones between energy development and most occupied buildings. Oil firms"have no idea what impact it's going to have," Hamlin said of the law."Businesses, they just don't invest in uncertainty."
Chevron Corp and Occidental Petroleum Corp are currently competing to acquire Anadarko Petroleum Corp, which holds more than 400,000 acres in Colorado. Executives from both firms have said they do not expect the new law to pose an obstacle. The commission will also be amending criteria for flagging permit applications for additional review when they raise specific concerns, such as a location near a school or a flood plain.