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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--On Election Day, Coloradans soundly rejected a proposal that could have severely curtailed future Oil & Gas drilling in the state. By a 57-43% margin, voters turned down Proposition 112, which would have significantly lengthened the distance that new wells could be drilled from occupied buildings and waterways. The measure would not have affected the state's estimated 50,000 wells that are currently operating.
Click on the images at right for U.S. Energy Information Administration (EIA) graphs showing crude oil and natural gas production in the Niobrara region, which includes Colorado.
Proposition 112 would have sharply increased setbacks for new oil and gas wells to at least 2,500 feet from occupied buildings and "vulnerable" areas like parks and creeks, up from the current setbacks of 500 feet from homes and 1,000 feet from schools.
Pre-voting polls showed a much closer contest than what was actually cast on November 6. The measure was the state's most contentious and expensive voter-led initiative in recent memory. The industry spent over $36 million to oppose the measure. A significant portion of that amount went to TV advertising, which said Proposition 112 would severely damage the state's economy. The main group supporting the measure, Colorado Rising, spent less than $1 million.
The oil and gas industry claimed Proposition 112 could cost up to 147,000 people their jobs, cripple the state's economy and deny badly needed funding to schools, roads and bridges. Those urging a "yes" vote on the measure emphasized the need to preserve public health, local control and the state's natural beauty.
Colorado is the nation's sixth-largest producer of oil and gas. Crude oil extraction is expected to total about 626,000 barrels per day (BBL/d) and natural gas production is forecast to reach about 5.2 billion cubic feet per day (Bcf/d) in November, according to the most recent Drilling Productivity Report from the U.S. Energy Information Administration (EIA) (Washington, D.C.).
"We're grateful that Coloradans stood with the energy sector to oppose this measure," Dan Haley, president and chief executive of the Colorado Oil & Gas Association (COGA) (Denver, Colorado), said in a statement. "I want every Coloradan to know that we are committed to developing our resources in a responsible manner that protects the environment and keeps our employees and communities healthy and safe."
Russell Mendell, a member of Colorado Rising, said no matter the final result, "we are continuing the momentum" to limit the fossil fuel industry in the state. "I think it really expands what is possible across the state and the nation to take back our rights, health and safety from corporations, and from this very dangerous practice."
Kelly Nordini, executive director with Conservation Colorado, which also supported Proposition 112, said the defeat of the measure doesn't mean that "voters want an oil and gas rig closer to their homes, schools or hospitals. Let's be clear: the oil and gas industry spent at least $30 million to beat this measure by fear-mongering about jobs. The fact remains (that) the oil and gas problem in this state has not been solved."
This was the first time a measure to increase setbacks for oil and gas drilling made it onto the Colorado ballot. Drilling opponents had been trying to get this measure before voters for years. A 2014 effort was tabled when Governor John Hickenlooper created a blue-ribbon panel to investigate ways to update the state's regulation of the industry. A 2016 effort fell about 20,000 signatures short of the 98,492 required to place the measure on the ballot. For more on those efforts, see August 7, 2014, article - Oil & Gas Industry Sees Brisk Business in Colorado after Withdrawal of Voter Initiatives and September 2, 2016, article - Oil & Gas Industry Urged to Continue Personal Outreach After Measures to Restrict Drilling in Colorado Fail to Make the Ballot.
Although Proposition 112 was defeated, efforts to limit future drilling in the Centennial State may not be over. On the same night that Coloradans rejected Proposition 112, they elected former congressman Jared Polis as governor. As a Democratic congressman, Polis had years earlier backed measures to increase oil and gas setbacks. He did not take a stand on Proposition 112 during his gubernatorial run.
However, in an interview with The Denver Post, Polis said this about future oil and gas development in the state: "I support making sure that local communities have seats at the table and that we have a stronger backstop for setbacks when there's no surface use agreement in place. I look forward to working with neighborhoods, local governments and any oil and gas (company) that wants to get ahead of these issues - and not risk the existence of their industry in the ballot box every two years - to try to find some common ground."
Coloradans also elected Democratic majorities in the state House and Senate. In prior years, the Democrat-led House had supported measures to limit future oil and gas drilling, but a Republican majority in the state Senate kept those measures from passing.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Proposition 112 would have sharply increased setbacks for new oil and gas wells to at least 2,500 feet from occupied buildings and "vulnerable" areas like parks and creeks, up from the current setbacks of 500 feet from homes and 1,000 feet from schools.
Pre-voting polls showed a much closer contest than what was actually cast on November 6. The measure was the state's most contentious and expensive voter-led initiative in recent memory. The industry spent over $36 million to oppose the measure. A significant portion of that amount went to TV advertising, which said Proposition 112 would severely damage the state's economy. The main group supporting the measure, Colorado Rising, spent less than $1 million.
The oil and gas industry claimed Proposition 112 could cost up to 147,000 people their jobs, cripple the state's economy and deny badly needed funding to schools, roads and bridges. Those urging a "yes" vote on the measure emphasized the need to preserve public health, local control and the state's natural beauty.
Colorado is the nation's sixth-largest producer of oil and gas. Crude oil extraction is expected to total about 626,000 barrels per day (BBL/d) and natural gas production is forecast to reach about 5.2 billion cubic feet per day (Bcf/d) in November, according to the most recent Drilling Productivity Report from the U.S. Energy Information Administration (EIA) (Washington, D.C.).
"We're grateful that Coloradans stood with the energy sector to oppose this measure," Dan Haley, president and chief executive of the Colorado Oil & Gas Association (COGA) (Denver, Colorado), said in a statement. "I want every Coloradan to know that we are committed to developing our resources in a responsible manner that protects the environment and keeps our employees and communities healthy and safe."
Russell Mendell, a member of Colorado Rising, said no matter the final result, "we are continuing the momentum" to limit the fossil fuel industry in the state. "I think it really expands what is possible across the state and the nation to take back our rights, health and safety from corporations, and from this very dangerous practice."
Kelly Nordini, executive director with Conservation Colorado, which also supported Proposition 112, said the defeat of the measure doesn't mean that "voters want an oil and gas rig closer to their homes, schools or hospitals. Let's be clear: the oil and gas industry spent at least $30 million to beat this measure by fear-mongering about jobs. The fact remains (that) the oil and gas problem in this state has not been solved."
This was the first time a measure to increase setbacks for oil and gas drilling made it onto the Colorado ballot. Drilling opponents had been trying to get this measure before voters for years. A 2014 effort was tabled when Governor John Hickenlooper created a blue-ribbon panel to investigate ways to update the state's regulation of the industry. A 2016 effort fell about 20,000 signatures short of the 98,492 required to place the measure on the ballot. For more on those efforts, see August 7, 2014, article - Oil & Gas Industry Sees Brisk Business in Colorado after Withdrawal of Voter Initiatives and September 2, 2016, article - Oil & Gas Industry Urged to Continue Personal Outreach After Measures to Restrict Drilling in Colorado Fail to Make the Ballot.
Although Proposition 112 was defeated, efforts to limit future drilling in the Centennial State may not be over. On the same night that Coloradans rejected Proposition 112, they elected former congressman Jared Polis as governor. As a Democratic congressman, Polis had years earlier backed measures to increase oil and gas setbacks. He did not take a stand on Proposition 112 during his gubernatorial run.
However, in an interview with The Denver Post, Polis said this about future oil and gas development in the state: "I support making sure that local communities have seats at the table and that we have a stronger backstop for setbacks when there's no surface use agreement in place. I look forward to working with neighborhoods, local governments and any oil and gas (company) that wants to get ahead of these issues - and not risk the existence of their industry in the ballot box every two years - to try to find some common ground."
Coloradans also elected Democratic majorities in the state House and Senate. In prior years, the Democrat-led House had supported measures to limit future oil and gas drilling, but a Republican majority in the state Senate kept those measures from passing.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
