STATE - REGULATORY: Oil and Gas Tax Assessments – Louisiana. (Update to 11/2/20 Weekly Report) On Election Day November 3, Louisiana voters approved a ballot initiative to determine the way the state values oil and gas wells for property tax purposes. The approval of Amendment 2 allows local tax assessors to account for the presence or production of oil or gas to be included in the methodology used to determine the fair market value of a well. Previously, assessments did not account for the presence or production of oil or gas and instead relied on other criteria such as the cost of a replacement well and the type of equipment used. The amendment, which came about as the result of HB 360, sponsored by Rep. Mike Huval (R), had the backing of the Louisiana Oil and Gas Association, the Louisiana Mid-Continent Oil and Gas Association and the Louisiana Assessor’s Association. Read more.
STATE - REGULATORY: Railroad Commission Race – Texas. In the November 3rd election, Republican Jim Wright defeated Democrat Chrysta Castañeda in the race for Texas Railroad Commissioner. Wright ousted sitting Railroad Commissioner, Ryan Sitton, in the March primary. A lifelong South Texan, Wright’s family have been ranchers in Texas for five generations. Wright turned his first job at a hazardous waste facility into a group of four oil field services companies that offer services ranging from consulting and transportation to industrial recycling. Wright “believes that the Railroad Commission should continue to engage with the industry and the public to find solutions to problems that will make a difference not only for Texans but in Washington and across the world.” Read more.INDUSTRY NEWS: Major pipeline executive sees demand leading to higher oil prices in 2021. “The recovery in demand coupled with the retrenchment in the U.S. shale sector could lead to higher oil prices as soon as in the second half of 2021,” according to Jim Teague, co-CEO of Enterprise Products Partners L.P., one of the largest pipeline companies in the country.Read more.PLUS: Make sure to check out the AAPL ELECTION RESULTS ROUNDUP special section in this week's report covering key national and state race details and ballot measures of interest.