Oil & Gas, and What's Next for California

Transcript

Mike Mills
Partner, Environmental & Natural Resources

My name is Mike Mills. I am a partner in the Environment, Land Use and Natural Resources Practice Group. My office is in Sacramento, and I have been with the firm for almost 17 years.

Why is oil and gas both essential and unstable in the public eye?

I would say the oil and gas business is very volatile; there are ups and downs always in it. I think what I foresee occurring as a result of this trend is maybe a new outlook and a new perspective when it comes to regulating oil and gas in California that maybe is not as onerous on industry and draconian.

Over the past 10 years, there have been a lot of new regulations that have been placed on the oil industry in California, and those are starting to have the intended effect of driving out the industry. I think people are starting to come to the realization that California and the West needs the industry at least for the next 20 years while we make whatever transition we are going to make in terms of energy supply. To kill it off now is probably catastrophic to consumers and the state generally.

Are lawmakers targeting fuel costs with new legislation?

Affordability of fuels for consumers as a consideration when they are making environmental decisions.

How are politicians responding to energy volatility?

I would say one recent regulatory development that businesses and clients should know about in this area is a recent vote that was taken by the South Coast Air Quality Management District. The District had considered a proposal to ban natural gas appliances within the Los Angeles Basin. Surprising to many, that proposal did not pass. I think this notion of energy affordability and the specter of $10 gasoline and rising energy bills is really starting to have an affect on our elected officials.