Grand Junction Sentinel
June 10, 2008, Bill Grant

An e-mail circulating among oil and gas workers in anticipation of today’s Colorado Oil and Gas Conservation Commission public hearing on proposed new drilling regulations warns, “If they put all of the new rules in place we will all be looking for jobs in three to four months.” This fear, based on constant threats by the industry to shut down operations if costs of drilling are increased by taxes or regulation, will color the views of the thousands of workers the oil and gas industry expects to turn out for the hearing. But will they really shut down? These workers deserve an honest answer. So do the communities that are being told they must choose between an economic crisis as energy companies flee and a healthy environment. A study published at the end of last year by Canada’s Fraser Institute provides an essential context in which to consider the impact on the industry of the cost of the proposed regulations. The study, based on a survery of energy companies, compares the cost of taxation and regulation, the relative stability of the business atmosphere, and the geopolitical risks among venues worldwide to determine which offer the best environments for investment in oil and gas exploration and development. The study is available at www.fraserinstitute.org/commerce.web/publication_details.aspx?pubID=5093....

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