Good Analysis of California vs. Texas Oil & Gas Policies

Well written article comparing the effects of Oil & Gas policies in California and Texas.  Worth reading.

California Vs. Texas: Oil And Natural Gas -- Comparing The Two States 1 In 5 Americans Call Home

Policy matters.  Even if a nation or state is endowed with significant natural resources, history shows that tax rates, regulatory burdens and rule of law largely determine whether those resources are harnessed or remain idle.  Good policies and honest government are why resource-poor nations such as Japan and Singapore far outperform nations with vast natural resources.

Nowhere is the effect of government more apparent than in the recent history of oil and gas production in California and Texas.

... In an August interview with the Houston Chronicle, Occidental’s CEO Vicki Hollub was asked about how the firm she leads was able to prosper during the downturn in oil prices.  She responded, “…we exited low-margin, low-return businesses… we spun off California.”

... The net result of California’s policies is that it must import more of its energy, with much of the shortfall coming in by supertanker, a mode of transportation that carries greater risks to the environment than locally produced oil and gas.

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2 hours ago, Tom Kirkman said:

Policy matters.  Even if a nation or state is endowed with significant natural resources, history shows that tax rates, regulatory burdens and rule of law largely determine whether those resources are harnessed or remain idle.  Good policies and honest government are why resource-poor nations such as Japan and Singapore far outperform nations with vast natural resources.

A fun question to ask liberals: "Central and South American countries have the same abundant natural resources as the US on top of a centuries-long head start.  Why are they not richer than us?" 

Answer: because they didn't prioritize wealth.  You reap what you sow.  

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