DJ/Niobrara News Pulse April 2021

Posted: May 12, 2021

The DJ/Niobrara Basin| April 2021

Field Overview

Located mainly in the Northeast of Colorado, the Denver-Julesburg Basin consists of five main oil-producing formations: Niobrara sections A-C, Codell, and Greenhorn. These five plays produce over 90% of Colorado’s oil/gas.

State Drilling Statistics (End of March)

Active Drilling Rigs in Basin- 7
Total Rigs in Colorado- 10
Total Rigs in United States- 440
Total U.S. Rigs up 8% YTD

State Permitting Data (End of March)

Permits Waiting Approval – 58
Permits Approved – 83

State Top Producers

Top Producer By BOE – Extraction Oil & Gas

Basin Highlights

New Regulations to help clean up old mines and oil wells

President Joe Biden and Sen. Michael Bennet of Colorado have both introduced legislation to help clean up old mines and oil wells. Biden’s $2.3 trillion plan to transform America’s infrastructure includes $16 billion to plug old oil and gas wells and clean up abandoned mines, a longtime priority for Western and rural lawmakers from both parties. There are 239 orphan wells in Colorado and 535 orphan well sites, each costing an average of $82,000 to plug. Biden’s plan, which needs approval by Congress, would jump-start the well-capping effort and expand it dramatically. Sen. Michael Bennet has introduced legislation to clean up federal sites and strengthen bond requirements for drilling on public lands. The two new bills would “restore local governments’ and tax payers’ important role in public land management decisions, while ensuring they are not left on the hook for future cleanup and remediation costs”.

Article Link

U.S. startup plans (NetPower) to build first zero-emission gas power plants

A new kind of power plant that doesn’t add greenhouse gases to the atmosphere is being built in the U.S., potentially providing a way for utilities to keep burning natural gas without contributing to global warming. Two plants will be built – one of them being built with the Southern Ute Indian Tribe Growth Fund in Colorado. Net Power’s technology uses a new kind of turbine to burn natural gas in oxygen, rather than the air. As a result, the plant only produces carbon dioxide and water as a byproduct. The water can be frozen out of the mixture and the pure stream of CO₂ can be buried in depleted oil and gas wells or similar geological structures.

Article Link

Top Permitting By Operator (March)

RankCompanyPermits ApprovedPermits Waiting Approval
1Nickel Road Operating3412
2Magpie Operating90
3Extraction Oil & Gas60
Hyperlinks to available Q1 2021 Reports

Top Producers BOE (2021 cum)

1Extraction Oil & Gas
3Crestone Peak
4Great Western
5Bonanza Creek
Hyperlinks to available Q1 2021 Reports

Rig Count

Colorado Production

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