Texas oil industry becoming 'Californicated' could have 'dire consequences' for economy, energy boss warns
US Oil and Gas Association president warns of potential fallout if Texas oil and gas industry becomes heavily regulated
U.S. Oil and Gas Association President Tim Stewart discusses the potential impact of Democratic energy policies on the Texas oil industry. Stewart weighs in on proposed gas tax suspensions and regulatory shifts.
U.S. Oil and Gas Association President Tim Stewart is sounding the alarm over the potential fallout if the Lone Star State were to adopt California-style energy policies.
Stewart stressed that "the absolute worst thing that could happen to the United States economy would be to have California-style energy policy implemented in Texas."
During an appearance on "Big Money in the Morning," Thursday, Stewart explained how Texas adopting energy policies similar to those in California or Colorado could deal an economic blow to the state and the U.S. economy overall.
"It would have dire consequences for the U.S. economy when you take a $27 billion industry like ours in Texas and you begin to heavily overregulate it," he said.
Stewart's warning comes after Democrats made significant gains in Texas during Tuesday's midterm elections, including victories by Gina Hinojosa and James Talarico.
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"When we saw that clean sweep of Democratic elections take place in Colorado, for example, in 2019, we've seen a 40% reduction, a 25 to 40% reduction in production in Colorado," he explained while discussing the effects of regulations.
"My big fear, and I've said this to my Texas friends, is what happens if Texas becomes Californicated. For example, it's, like, if you're a business in California, you don't like being regulated, you pick up and you move to Texas."
"We have to go where the actual resource is," Stewart said.
He explained how oil and gas companies from Colorado and California have moved their operations to Texas because of the availability of resources.
"We don't have any other place to go."
U.S. Oil and Gas Association President Tim Stewart warns of "dire consequences" for the U.S. economy if Texas becomes "Californicated." (Sharon Steinmann/Bloomberg via Getty Images / Getty Images)
Stewart told FOX Business’ Dagen McDowell that Tuesday’s election was watched "very, very carefully" and that "alarm bells were going off" once the election results were in.
The U.S. Oil and Gas Association president highlighted Hinojosa's emphasis on data center and electricity costs rather than the oil and gas industry.
"I think she fully understands that $27 billion contribution to the economy and 1.4 million jobs is important," he said.
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Stewart highlighted how outgoing Texas Gov. Greg Abbott approached energy policy and recognized the industry's economic importance, while also offering his outlook on the incoming Hinojosa administration.
"We anticipate that, again, that the governor-elect will understand how important the role that we play to her state, and we hope that she's willing to work with us."
"Governor Abbott supported an all-above approach. We hope that the governor-elect will do the same," he added.
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