• 5 hours Tesla Is “Headed For A Brick Wall”
  • 10 hours Norwegian Pension Fund Set to Divest From Oil Sands and Coal Ventures
  • 14 hours IEA: “2018 Might Not Be Quite So Happy For OPEC Producers”
  • 15 hours Goldman Bullish On Oil Markets
  • 17 hours OPEC Member Nigeria To Issue Africa’s First Sovereign Green Bond
  • 19 hours Nigeria To Spend $1B Of Oil Money Fighting Boko Haram
  • 21 hours Syria Aims To Begin Offshore Gas Exploration In 2019
  • 23 hours Australian Watchdog Blocks BP Fuel Station Acquisition
  • 1 day Colombia Boosts Oil & Gas Investment
  • 1 day Environmentalists Rev Up Anti-Keystone XL Angst Amongst Landowners
  • 2 days Venezuelan Default Swap Bonds At 19.25 Cents On The Dollar
  • 2 days Aramco On The Hunt For IPO Global Coordinators
  • 2 days ADNOC Distribution Jumps 16% At Market Debut In UAE
  • 2 days India Feels the Pinch As Oil Prices Rise
  • 2 days Aramco Announces $40 Billion Investment Program
  • 2 days Top Insurer Axa To Exit Oil Sands
  • 3 days API Reports Huge Crude Draw
  • 3 days Venezuela “Can’t Even Write A Check For $21.5M Dollars.”
  • 3 days EIA Lowers 2018 Oil Demand Growth Estimates By 40,000 Bpd
  • 3 days Trump Set To Open Atlantic Coast To Oil, Gas Drilling
  • 3 days Norway’s Oil And Gas Investment To Drop For Fourth Consecutive Year
  • 3 days Saudis Plan To Hike Gasoline Prices By 80% In January
  • 3 days Exxon To Start Reporting On Climate Change Effect
  • 3 days US Geological Survey To Reevaluate Bakken Oil Reserves
  • 4 days Brazil Cuts Local Content Requirements to Attract Oil Investors
  • 4 days Forties Pipeline Could Remain Shuttered For Weeks
  • 4 days Desjardins Ends Energy Loan Moratorium
  • 4 days ADNOC Distribution IPO Valuation Could Be Lesson For Aramco
  • 4 days Russia May Turn To Cryptocurrencies For Oil Trade
  • 4 days Iraq-Iran Oil Swap Deal To Run For 1 Year
  • 6 days Venezuelan Crude Exports To U.S. Fall To 15-year Lows
  • 7 days Mexico Blames Brazil For Failing Auction
  • 7 days Norway Allows Eni To Restart Goliat Oil Field In Barents Sea
  • 7 days Malaysia Suggests Muslim Countries Stop Trading Oil In U.S. Dollars
  • 7 days Kinder Morgan Wins Appeal To Start Trans Mountain Work
  • 7 days Mexico Cancels Deepwater JV Tender Due To Lack Of Interest
  • 7 days Oil Drillers Give Cold Shoulder To Alaska Bidding Round
  • 7 days Budweiser Bets On Tesla To Replace Its Fleet
  • 8 days Forties Pipeline And Nearby Terminal Disrupted After Oil Leak
  • 8 days Major Nigerian Union Threatens Strike After Mass Firing Of New Members

Breaking News:

Tesla Is “Headed For A Brick Wall”

Alt Text

Oil Imports From Mexico Soar After Hurricane Season

U.S. oil imports from Mexico…

Alt Text

Goldman: These Are The Hottest Commodities In 2018

Investment bank Goldman Sachs remains…

Alt Text

The ‘Unknown Unknowns’ That Threaten U.S. Shale

Projections for U.S. shale growth…

Nick Cunningham

Nick Cunningham

Nick Cunningham is a freelance writer on oil and gas, renewable energy, climate change, energy policy and geopolitics. He is based in Pittsburgh, PA.

More Info

Fracking Under Fire: The Ballot Initiatives That Impact Oil & Gas


The financial and commodity markets took a hit at the end of October and early November as the U.S. presidential election seemed to tighten, with the future of U.S. government policy at stake. The uncertainty led the S&P 500 to sink in consecutive days between October 25 and November 3, one of the longest stretches in years. Conversely, the CBOE Volatility Index, measure of stock volatility, spiked as polls showed Donald Trump gaining lost ground on Hillary Clinton.

Much has been made about the differences between the two candidates on energy. In short, Hillary Clinton would pose challenges, although not existential ones, to oil and gas. EPA regulations could tighten, while support for renewable energy could also be expected. Oil and gas drilling would probably continue largely unencumbered though – Clinton essentially represents an extension of the Obama era. Trump on the other hand, would repeal regulations on fossil fuels far and wide. Based on stock market movements, investors are worried about the broader risks of a Donald Trump presidency, but one thing is for sure, he would be a huge friend of oil and gas.

Leaving presidential politics aside, there are several other crucial energy questions to be solved on Election Day. A series of ballot initiatives could have large implications for the oil and gas industry, even as the referenda struggle to gain attention in the media circus surrounding the race for the White House. Here is a quick rundown of some of the most important energy issues to be decided by voters on Tuesday.

Washington State carbon tax. The state of Washington is proposing a state-wide carbon tax. Initiative 732 has garnered a surprising amount of support, likely due to the fact that it would share the revenues raised with Washington residents. The $15 per metric ton of CO2 would be revenue neutral, with revenues to be used to cut the state’s sales tax by 1 percentage point, share revenue with low income families, and reduce other business taxes. The tax jumps to $25/ton in 2018 and rises by 3.5 percent above inflation annually. The benefits seen by many from the carbon tax has allowed to a degree of popularity, and in fact, some greens do not like it because the revenue is not used to further renewable energy programs. But the proposed funding scheme is much more politically popular, and it could be enough to see the first carbon tax implemented in the U.S. Related: Pirates Threaten Oil And Gas Shipping In The Red Sea

Florida’s anti-solar Amendment. One of the more confusing initiatives is an anti-solar amendment in Florida being deceptively billed as a pro-solar effort. The language in the amendment says Florida residents would have the right to own or lease solar panels…a bizarre assertion since that right already exists currently. That section has been included in order to dupe voters into supporting the rest of the amendment, which enshrines monopoly power for the state’s utilities over the electricity sector. Florida is one of only a few states that bars third party installers like SolarCity from owning power generation assets, which means residents cannot lease solar panels. To have solar, one has to pay for the entire installation upfront, and cannot lease them. The state’s laws severely restrict the potential growth of the solar sector, protecting monopoly profits for utilities and barring competition. The shameless effort on behalf of the utilities to push this anti-solar amendment would lock monopoly power into the state constitution. Voters appear set to unwittingly pass the amendment because of the seemingly pro-solar language.

Nevada’s utility monopoly. Nevada voters are weighing a decision on whether or not to end the effective monopoly that NV Energy has on the state. Several major Las Vegas casinos want to get out of contracts with NV Energy in order to purchase electricity from cheaper sources, including solar. Support to end the monopoly is likely spurred on by the controversial 2015 decision by officials at the Public Utilities Commission to hike fees on homes that have solar, a move that basically kicked SolarCity out of the state. As in Florida, the Nevada initiative is another proxy battle between the utility monopoly and more competition from renewable energy. Related: Surging M&A Activity Suggests The Worst Is Over For Oil

Fracking ban in a California County. A ballot measure in Monterey County in California would ban fracking. As the Wall Street Journal noted recently, two neighboring counties – San Benito and Santa Cruz – already having fracking bans, but those counties do not have a heavy drilling presence. The stakes are higher for Monterey County because oil is produced there. Measure Z will ban fracking in Monterey County, it would ban new wells, and it would place tighter regulations on the use of disposal water. The industry says the measure would kill the industry in the county. “Measure Z bans oil production in the county because it does not leave any way to manage the produced water,” Dallas Tubbs, a Chevron engineer, told the WSJ. The oil and gas industry is spending heavily to oppose the measure.

Colorado effort to restrict citizen-led constitutional amendments. A Colorado initiative would have a more indirect effect on the energy industry. The vote in question would make it more difficult for citizens to put state constitutional amendments up for a direct vote via the ballot box. This stems from the handful of local bans on fracking that have passed in Colorado in recent years, and it comes after the failed effort by activists to get a statewide fracking ban on Tuesday’s ballot. The fracking ban fell short of the signatures needed, and the state’s energy industry wants voters to pass Amendment 71 on November 8, which will make it even more difficult for citizens themselves to place future amendments on the ballot.

By Nick Cunningham of Oilprice.com

More Top Reads From Oilprice.com:

Back to homepage

Leave a comment
  • Jim Decker on November 06 2016 said:
    Hillary Clinton- “You know, I don’t support it when any locality or any state is against it, number one. I don’t support it when the release of methane or contamination of water is present. I don’t support it — number three — unless we can require that anybody who fracks has to tell us exactly what chemicals they are using. So by the time we get through all of my conditions, I do not think there will be many places in America where fracking will continue to take place.”

    How is that not an existential threat to fracking? She is a huge threat to the energy industry. Her "promise" to force tax payers to pay for a half a billion solar panels is an existential threat to all of us- not to mention that they would come from China. I wonder how much they paid her for that position.

    As a resident of NV, I am a strong supporter of the ballot initiative to end Warren Buffet's NV Energy monopoly on electrical generation. NV Energy has been morphing into Big Brother. There is no reason for electricity generation to be a monopoly, only electricity distribution. Competition always improves the situation.
  • Bill Simpson on November 07 2016 said:
    Nothing like letting people who get their information from movies decide national energy policy. Yep, that's gonna work great, just like Brexit.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News