The DJ/Niobrara Basin| August 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
Active Drilling Rigs in Basin- 12
Total Rigs in Colorado- 11
Total Rigs in United States- 497
Total U.S. Rigs up 94% YTD
State Permitting Data
Permits Approved – 75
State Top Producers
Top Producer By BOE – OXY
Basin Highlights
K.P. Kauffman Receives Hefty Fine
The COGCC determined that K.P. Kauffman violated COGCC rules by failing to report spills and the status of flowlines, as well as failing to inform the agency of what it was doing to correct problems. The commissioners agreed with the staff’s allegations that the company failed to meet filing deadlines for cleanup plans. The Denver oil and gas company faces approximately $1.8 million in penalties and the loss of its ability to operate in Colorado. The hearing to determine whether to prohibit the company from receiving any new permits will take place on Sept. 20-21.
Larimer County Tightens Oil and Gas Rules
In an extension of the commissioners’ July 26 meeting, Larimer County commissioners approved new, stricter gas and oil regulations. According to the new regulations, oil and gas facilities must be at least 2,000 feet away from many major structures, such as schools, hospitals, and senior living facilities. Oil and gas facilities in Larimer County are prohibited from being built within 500 feet of river and stream highwater marks, a greater setback requirement than the Colorado Oil and Gas Conservation Commission’s requirement of 100 feet. The modifications also redefine air quality monitoring requirements, including particular criteria for declared Air Quality Advisory days; require leak detection at oil and gas sites to be performed at least annually; and require new oil and gas pipelines to go through the county’s administrative special review process.
Colorado Gas Prices Remain High as Supply Drops Below Demand
Colorado’s average gas price is nearly 50 cents higher than the national average. According to AAA, gas prices in the state average $3.64 per gallon, with some areas reaching nearly $5 per gallon. The national average for gasoline is $3.18 per gallon. Colorado has only seen a 13-cent per gallon increase in the last month, according to AAA’s gas price map. Prices, however, remain nearly $1.30 per gallon higher than this time last year. Rural counties in eastern Colorado have outperformed more densely populated counties. According to AAA, Prowers County has the lowest gas prices in Colorado at $2.89 per gallon, while Pitkin County has the highest at $4.86 per gallon.
Top CO Permitting By Operator
| Rank | Company | Permits Approved |
| 1 | GMT Exploration | 40 |
| 2 | Simcoe | 14 |
| 3 | Upland Exploration | 10 |
Top Producers BOE
| Rank | Company | Oil Production (mmbbls) (6/21) |
| 1 | OXY | 14.8 |
| 2 | Chevron | 12.2 |
| 3 | PDC Energy | 11.0 |
| 4 | Extraction Oil and Gas | 6.4 |
| 5 | Crestone Peak Resources | 5.0 |
Rig Count
Colorado Production
Click above to subscribe to the RARE
PETRO Podcast Network or visit
www.rarepetro.com/podcasts
The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:
www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics