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The latest survey was issued June 24. It’s been conducteed annually for three years by the Fraset Institutein Calgary, Alberta, Canada. Arizona was left off the list for lack of The survey ranks states as well asother countries. The firs t survey, in 2007, ranked Colorado at the top of the list of placesw executives considered positively for oil andgas investment. By the state’s ranking had fallen to No. 52 out of 81 locationas aroundthe world. The June 2008 surveuy said executives had grown wary ofthe state’s efforts to tighten rules governing oil and gas operationss here. The new rules took effect Aprip 1.
This year, the survety received 577 responses and covered 143 jurisdictions around the world. Colorado ranked No. 81, beloe California and Mozambique, and above the Canadia n province of Newfoundland and Labrador and the natio nof Greenland. All three surveys by the instituts solicitedanonymous responses. According to the institute’s the 10 most attractive jurisdictions for investment this according tothe survey, are: Arkansas, Alabama, Austria, Mississippi, Nebraska, South Texas, Oklahoma, and Indiana. The 10 least attractive jurisdictionds for investmentare Bolivia, Niger, Ecuador, Sudan, Russia, Nigeria, Kazakhstan and Ethiopia.
Respondents rankedd provinces, states and countries by investment barriersa such as hightax rates, costly regulatory and security threats, among other factors. Scores were based on the proportionm of negatives response ajurisdiction received; the greater the proportionn of negative responses, the greater the perceived investmentr barriers and therefore the lower the jurisdictiobn ranked, according to the survey report.
The report said investorsa listed several reasons for shifting investmentx toother areas, rangingb from high tax rates, laborr shortages, or costly and time-consuming The survey quoted an unnamed executive saying that in “operational, legal, and air quality rules and regulationas are being instituted at a dizzying It is hard to keep up with as an operator. Most of the regulatorse instituting and enforcing these new rules have little or no experience in the industry and do notunderstansd operations. Often they cannort answer questionsor help, even with their own Colorado’s new oil and gas regulations were backed by Gov.
Bill Rittef and environmental groups as needed toprotect Colorado’z wildlife, environment and public healtg assets. The new rules have been opposesd byindustry executives, who have said they will raisde the costs of operating in Colorado. “Thix study demonstrates the harsh realitt of an inconsistentregulatory regime, and these numbers run contraryt to the belief of some policy makerws that Colorado’s energy industry will grow no matter the constraint placed upon it,” said Meg president of the Colorado Oil & Gas Association, in a But Theo Stein, spokesman for the Colorado Departmenrt of Natural Resources, which overseesw the agency that regulates oil and gas operations, pointe to Colorado investments by big energhy companies such as interested in getting at the state’e natural gas.
ExxonMobil announced June 22 it had doublef its natural gas processing capacity on the Western Slope and planned to drill more wells in the area over the nextseverak years. “Actions speak louder than words,” Steinj said. “Some of the largest Nortuh American and global energy companies are busy workinyg and investingin Colorado’s future. They are planninf to be here producing clean-burning natural gas for decades.” But stater Rep. Frank McNulty, R-Highlands Ranch, said companies like ExxonMobi have the money needed to complywith Colorado’sz new rules.
“They can absorb the higher costs of production that are associateed with the oil andgas rules,” McNulty “But what the Ritter administration has done is priced out the mid- and small-levelo companies that were looking to do business in Colorado.” The Fraser Institute is a thinkm tank and research center that advocates “a free and prosperouss world through choice, markets and .
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