U.S. Oil and Gas Association President Tim Stewart has issued a stark warning about the potential economic fallout if Texas adopts California-style energy policies, calling it "the absolute worst thing that could happen to the United States economy" [1]. Stewart emphasized that heavily overregulating Texas's $27 billion oil and gas industry could have "dire consequences for the U.S. economy" [1]. His concerns were prompted by Democratic electoral gains in Texas during Tuesday's midterm elections, including victories by Gina Hinojosa and James Talarico, which Stewart said prompted "alarm bells" within the industry [1].
Stewart pointed to Colorado as a cautionary example, noting that when Democrats swept elections there in 2019, the state experienced "a 25 to 40% reduction in production" [1]. He expressed particular concern about Texas becoming "Californicated," explaining that if regulatory burdens increase, businesses may relocate—though he stressed that oil and gas companies "have to go where the actual resource is" and "don't have any other place to go" [1]. Stewart highlighted how companies from Colorado and California have already relocated operations to Texas due to resource availability and regulatory pressures in their home states [1].
Regarding the incoming administration, Stewart acknowledged that Hinojosa has emphasized data center and electricity costs rather than focusing on the oil and gas industry, but expressed hope that she "fully understands that $27 billion contribution to the economy and 1.4 million jobs is important" [1]. He noted that outgoing Governor Greg Abbott supported an "all-above approach" to energy policy and expressed optimism that the governor-elect would adopt a similar stance [1]. The industry's concerns reflect broader tensions between energy production and environmental regulation in a state that has become increasingly politically competitive.
CONCLUSION
The oil and gas industry is signaling significant concern about potential regulatory changes in Texas following Democratic electoral gains, citing Colorado's 25-40% production decline as a cautionary precedent. With Texas's oil and gas sector contributing $27 billion to the economy and supporting 1.4 million jobs, industry leaders are seeking assurances from the incoming administration that business-friendly energy policies will continue [1].