• Twitter
  • Roger S. Conrad

Regulatory Risks: Real and Rising but so is Opportunity

By Roger S. Conrad on Apr. 2, 2019

Last November, Colorado voters defeated Proposition 112, a ballot measure that would have imposed significant new limits on oil and gas drilling. This month, the state’s senate advanced legislation that would have much the same impact, if the state house and governor give their assent as expected.

By no means will the new law end energy production in Colorado. But it will for the first time allow city and county governments to use planning and land-use powers to regulate drilling, and with a mandate to prioritize public health and the environment. At a minimum, that means more hurdles for companies to jump through before they drill or build new midstream infrastructure, at least in some jurisdictions.

As our feature article highlights, the “Centennial State” isn’t the only place in the US that’s tightening regulation of energy companies. Even Oklahoma has ramped up industry oversight in recent years, following a dramatic increase in earthquakes.

Stepped up oversight obviously adds an element of risk for energy investing. And with opponents of energy projects flush with cash, we can count on more regulatory and court challenges for everything from drilling permits to pipeline projects.

With that risk, however, is opportunity. Mainly, with US oil and natural gas output on the rise, the payoff for companies able to successfully navigate the emerging environment will be even greater.

Our feature piece looks at the state of energy sector regulation, highlighting areas of greatest danger and opportunity. We’d also like to thank all the readers who participated in this month’s subscribers only chat, where we explored a wide range of topics. The full transcript of the four hours plus of questions and answers is available by clicking on the “Events” tab on the Energy and Income Advisor website.

Energy & Income Advisor

Your complete guide to energy investing, from growth stocks to high-yielders.

In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.

Subscribe today to receive a sample issue of EIA
  • Live Chat with

    Elliott and Roger on Aug. 27, 2019

  • Portfolios & Ratings

    • Model Portfolios

      Balanced portfolios of energy stocks for aggressive and conservative investors.

    • Coverage Universe

      Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.

    • MLP Ratings

      Our assessment of every energy-related master limited partnership.

    • International Coverage Universe

      Roger Conrad’s coverage of more than 70 dividend-paying energy names.

    Experts

    • Elliott H. Gue

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor

    • Roger S. Conrad

      Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor