NFIB Members Overwhelmingly Reject Proposed Drilling Permit Ban on Oil and Natural Gas Drilling: What it Means for Investors
What’s going on in Colorado?
One of the proposed Colorado bills would put a ban on new oil and gas drilling permits by phasing out permitting of new oil and gas wells starting in 2028 and effectively banning new drilling permits in 2030. It also would increase liability bonds for wells that are drilled. The second proposal would require oil and gas operators to halt production for five months every year.
(From eenews.net)
In a resounding declaration of support for the oil and gas industry, members of the National Federation of Independent Business (NFIB) in Colorado have emphatically rejected a proposed ban on oil and gas drilling permits. With a staggering 98% of respondents opposing Senate Bill 159, which would prohibit the issuance of such permits starting in 2030, the message from small business owners is clear: No ban on oil and gas drilling.
NFIB Stance and Poll Results
NFIB, a leading small business advocacy association at both the state and national levels, regularly polls its membership on key issues to shape its lobbying efforts. This special poll underscores the vital importance of the oil and gas industry to small businesses and the broader economy.
The proposed legislation, SB24-159, is set for its first hearing on March 14 in the Senate Agriculture & Natural Resources Committee. However, the overwhelming opposition from NFIB members signals a significant challenge for proponents of the ban.
Tony Gagliardi, NFIB’s Colorado state director, highlighted the potential negative consequences of such a ban, particularly given the proximity of the proposed implementation date. With just over five years until 2030, questions loom over whether alternative energy infrastructure can adequately replace the energy production lost from oil and gas drilling.
Small Business Concerns and Priorities
Moreover, NFIB’s Small Business Problems & Priorities report sheds light on the concerns of small business owners, with electricity costs ranking 16th and the cost of natural gas, propane, gasoline, diesel, and fuel oil ranking 19th. The doubling of concerns regarding fuel costs from the previous report underscores the significance of affordable energy to small businesses’ operations and profitability.
Investment Implications
For prospective investors in direct participation programs (DPPs) in the oil and natural gas industry, this rejection of the proposed ban carries substantial implications. It reaffirms the industry’s resilience and ongoing importance to the economy despite regulatory challenges. Additionally, it signals a favorable regulatory environment for oil and gas exploration and production activities, enhancing the investment outlook for DPPs in the sector.
Conclusion
In conclusion, the overwhelming opposition from NFIB members to the proposed ban on oil and gas drilling permits underscores the industry’s critical role in supporting small businesses and the broader economy. For investors considering DPPs in the oil and natural gas sector, this development signals a supportive regulatory environment and reinforces the sector’s long-term investment potential.
