Texas Oil Industry Warns of ‘Dire Consequences’ Under California-Style Energy Policies

U.S. Oil and Gas Association President Tim Stewart is sounding the alarm over the potential economic fallout if Texas adopts California-style energy policies. Stewart warned that implementing such regulations in the Lone Star State could have severe consequences for both the state and the national economy.

“The absolute worst thing that could happen to the United States economy would be to have California-style energy policy implemented in Texas,” Stewart stated during an appearance on “Big Money in the Morning.” He explained that heavily overregulating the state’s $27 billion oil and gas industry would deal a severe blow to the economy.

“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,” Stewart said.

His warnings come amid recent political shifts in Texas, where Democrats made notable gains in the midterm elections, including the historic victory of Gina Hinojosa as the first Latina Texas governor. Stewart pointed to Colorado as a cautionary example, noting that after a clean sweep of Democratic elections in 2019, the state saw a 25% to 40% reduction in oil and gas production due to regulatory pressures.

“My big fear, and I’ve said this to my Texas friends, is what happens if Texas becomes Californicated,” Stewart remarked. He explained that businesses often flee California’s regulatory environment, relocating to Texas, but if Texas imposes similar rules, the industry will have nowhere else to go.

“We have to go where the actual resource is,” Stewart noted, highlighting that many oil and gas companies have already moved their operations to Texas from California and Colorado due to resource availability and regulatory friendliness. “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 expressed deep concern over the recent election results, telling FOX Business’ Dagen McDowell that “alarm bells were going off” as the results came in. He noted that while Governor-elect Gina Hinojosa has focused on data center and electricity costs, the oil and gas sector remains vital to the state’s economic foundation.

“I think she fully understands that $27 billion contribution to the economy and 1.4 million jobs is important,” Stewart said, expressing hope that the incoming administration will recognize the industry’s value and adopt a collaborative approach. He contrasted this with outgoing Governor Greg Abbott’s “all-of-the-above” energy strategy, hoping for a similarly supportive stance from the new leadership.

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