A proposition on Colorado’s November 6th ballot threatens to cut the state’s oil output by more than 50 percent and halt the development plans of many E&P companies in their tracks.
If passed by the state’s voters, Proposition 112 will require new drilling sites, processing plants and gathering lines to be placed more than 2,500 ft from homes, schools and other so-called vulnerable areas.
This would be a huge setback for companies like BP, Noble Energy, Anadarko Petroleum Company and others who have acquired significant acreage for E&P activities in the state. It would also seriously slow Colorado’s oil and gas production growth, which has climbed ten-fold since 2001 to reach 450,000 b/d earlier this year.
Recent polls show Colorado voters fairly evenly split on the proposition, with 43 percent supporting it and 47 percent in opposition. As a result, oil and gas executives will be closely watching the voting numbers out of Colorado on November 6th.
And, count on EnergyMakers Advisory Group to report the results and offer insights into what the outcome will mean for the industry.