Watching Government: Considering the 2014 elections

Nov. 17, 2014
Not a whole lot changed for US oil and gas in the 2014 elections despite Republicans regaining majority control of the Senate and increasing their number of governorships.

Not a whole lot changed for US oil and gas in the 2014 elections despite Republicans regaining majority control of the Senate and increasing their number of governorships. Industry and environmental leaders alike claimed victories from the results, but it will take months for the actual impacts to appear.

Once Mitch McConnell (R-Ky.) succeeds Harry M. Reid (D-Nev.) as Senate majority leader in January, House-approved energy bills that have been blocked the past few years appear more likely to be considered. McConnell and US House Speaker John A. Boehner (R-Ohio) separately said this could include expedited approval of the proposed Keystone XL crude oil pipeline's crossborder permit.

There would be enough senators supporting the project on both sides of the aisle that the Senate could pass such a bill in 2015. There wouldn't be enough, however, to override a veto by US President Barack Obama, should he choose to exercise one.

That looks likely now, but not necessarily definite. Obama said on Nov. 5 that he wants to let the US Department of State review "play out" and allow the Nebraska Supreme Court to reach a decision regarding its route across the state (see story, p. 20).

"We'll consider any sort of proposals that are passed by Congress, including a rider like this that does seem to pretty directly contradict the position that's been adopted by this administration," White House Press Sec. Josh Earnest told reporters the next day. "At that point, we'll be able to give you a more specific reaction to it," he said.

One prominent Keystone XL congressional supporter will be watching from the sidelines. US Rep. Lee Terry (R-Neb.), an Energy and Commerce Committee member who wrote a House-approved bill to move the crossborder permit decision-making power from the White House, lost his own reelection bid.

Fracing referendums

Meanwhile, hydraulic fracturing opponents claimed a victory in Denton, Tex., when voters there passed a referendum banning the process. "While the ballot measure that passed in Denton is unfortunate, I expect that real facts and common sense will ultimately prevail," Texas Railroad Commission Chair Christi Craddick said on Nov. 5.

But a referendum-promoted as a fracing ban that actually would have halted any well stimulation there-failed in Santa Barbara County, Calif., by a 62-37% vote.

Pennsylvania's independent producers, meanwhile, watched as Democrat Tom Wolf, who called for a severance tax on unconventional natural gas development, unseated Republican Tom Corbett as governor.

"By all accounts, this proposition will be front and center in the discussion about state revenue needs with the advent now of a new governor and the start of a new legislative session," said Pennsylvania Independent Oil & Gas Association Pres. Louis D. D'Amico.