Legislators in key producing states generally are taking a “wait-and-see” or a “do-no-harm” approach this year to any new rules affecting drilling in their states, although some enacted legislation earlier that is affecting drilling now.
For a special report updating regulatory and legislative initiatives affecting industry, RigData’s Land Rig Newsletter recently contacted industry or agency executives in 16 key producing states—Alaska, Arkansas, California, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming—to determine what those states are doing to help sustain drilling in the downturn.
Discussions centered on the regulatory environment, taxes, frac bans, water usage, or other regulations. None surveyed said their states are doing anything in a fiscal or regulatory sense to help sustain drilling in 2016. However, a few states enacted tax incentives prior to this year to help ease the tax burden on the industry.
Legislators in California, Colorado, Montana, New Mexico, Pennsylvania, Utah, and Wyoming said they are taking a “wait-and-see” approach to new regulations or legislation targeting industry.