RIFLE, Colo.—The economy and uncertainty about pending state regulations are responsible for a decline in the number of rigs drilling for oil and natural gas in Colorado, industry officials say.
In 2008, 115 rigs were drilling wells, compared to 62 today, a decrease of 46 percent.
Participants at a Northwest Colorado Oil and Gas Forum in Rifle blamed declining prices and the pending rules. Gas prices have dropped from $15 per 1,000 cubic feet last year to $2.75—prices adjusted for the cost of moving gas from Colorado.
Bill Barrett Corp., Chevron, Laramie Energy, Marathon Oil, Noble Energy, OXY and Williams Production all reported decreased Colorado production.
“What happens depends on how commodity prices go for the rest of the year,” David Grisso, an EnCana field operations supervisor, told the Thursday forum.
Still, the Colorado Oil and Gas Conservation Commission has issued 1,200 drilling permits this year. That’s on top of 4,500 permits previously issued for plots that haven’t been drilled.
Nearly 50 energy workers and former employees protested the rules outside the forum, and Mesa County Commissioners Janet Rowland and Craig Meis blamed Gov. Bill Ritter and the Democratic-controlled legislature for what they called an “unfriendly atmosphere” for the industry.
Lawmakers were considering about 100 new industry rules Friday. The Legislature ordered revisions to give more weight to public health, property rights and the environment.
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Information from: The Denver Post,
