The re-election of President Obama means more oversight and regulation of the oil and gas industry from 12 federal agencies during the next four years.
Look for Obama and fellow Democrats in the House and Senate to resurrect the cap-and-trade idea that failed to pass Congress several years ago. Cap-and-trade legislation would create a market for carbon emissions, and those companies and individuals who create carbon emissions would have to buy credits, which can be bought, sold and traded on an open market.
A cap-and-trade system has been operating in Europe for several years and it has encountered numerous problems. However, many supporters believe that the government could raise funds by collecting a fee on the trading of emission credits.
The Environmental Protection Agency will lead the assault with additional attempts to regulate the oil and gas industry through expanded oversight of air and water activities. The EPA will release its study of hydraulic fracturing later that could result in further regulation.
Obama’s Treasury Department will once again propose elimination of tax provisions used by small, independent oil and gas producers to drill and produce hydrocarbons in the U.S. Obama has proposed elimination of these provisions in his three previous budgets.
Read more at the Times Record News. By Alex Mills.