A notable upset and the numbers behind it
State representative Jon Rosenthal topped Bo French in the race for the Texas Railroad Commission. The Associated Press called it for Rosenthal with 94% of ballots counted, putting him ahead by more than 6 percentage points and making him the first Democrat to win a seat on the commission in 36 years.
The commission regulates an oil patch that produces more crude than any OPEC member except Saudi Arabia. Born more than a century ago as a freight-rate overseer, it now handles drilling permits, well inspections, and safety and pollution enforcement. Its regulatory playbook even inspired OPEC's founders in 1960.
The campaign, controversy, and late break
Rosenthal, a self-described "drill-baby-drill Democrat," vowed tighter oil-and-gas oversight, with stricter limits on methane flaring and a mandate that operators speed up the plugging of abandoned wells. He also pledged to curb the industry's sway over the regulator. Even so, the numbers constrain him because the GOP retains control of two out of the three seats.
This typically obscure race drew national attention after French posted a racist message in September. French posted a picture of University of Texas fans reveling after a comeback over Ohio State, declaring that the image showed "how many Americans have been displaced by foreigners." He wrote, "It's everywhere and far worse than any of us could imagine."
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A late University of Houston poll showed a statistical dead heat as Rosenthal closed the gap. Cal Jillson of Southern Methodist University in Dallas, where he teaches political science, said Rosenthal became "the receptacle for anti-Bo French votes."
How insiders size him up
A watchdog called the outcome "historic" because the winner was not the oil industry's preferred candidate, said Virginia Palacios, executive director of Commission Shift Action. Analysts note Rosenthal's background as a consensus builder in the legislature and as a mechanical engineer for oil field contractors SLB and NOV Inc. "Rosenthal could work well with the other two railroad commissioners who are Republicans," said Renee Cross, senior executive director for the University of Houston's Hobby School of Public Affairs. "I just can't see Rosenthal with his background coming in and just becoming this wild-eyed liberal trying to impose things that just aren't consistent with Texas's way of doing things."
From the operator side, the reaction was measured. Steve Pruett, the chief executive of the privately held Elevation Resources and a decades-long Permian Basin veteran, said, "Jon is from our industry, he'll be fine." He called Rosenthal "reasonable and informed."
What this means for investors
With Republicans holding two of the three seats, watch for pushes on methane flaring oversight and faster plugging of abandoned wells.
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