The DJ/Niobrara Basin | August 2023
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- 14 (-)
Total Rigs in Colorado- 16 (+2)
Total Rigs in the United States- 630 (-2)
Total U.S. Rigs 17.5% YTD
State Permitting Data
Permits Approved (10/1/2022 to 4/30/2023) – 35
State Top Producers
Top Producer By BOE – Kerr McGee (Occidental)
Chevron Corporation has acquired Denver-based PDC Energy, making it Colorado’s largest oil and gas company. This comes three years after Chevron purchased Noble Energy. Approximately half of the company’s 600,000 acres are in the Denver-Julseburg Basin, which is near Chevron’s current operations. It will be one of Chevron’s top five production producing plays worldwide, producing an average of 400,000 barrels of oil per day. “We have an inventory that’s permitted and we see possibilities here,” Chevron’s Regional Vice President, Kim McHugh told CBS News Colorado. There has been no news regarding possible layoffs of the PDC workforce.
The town of Frederick, Colorado has been expanding at a rate of 6% to 8% per year, but the town’s more than 300 wells pose a constant challenge, especially to commercial, industrial, and mixed-use developments, which the mayor said are essential to maintaining reasonable local taxes. “We are trying to bring in commercial and industrial growth and we find developers say they are stuck and they cannot develop on land they own because of oil and gas wells,” Mayor Tracie Crites said. “It has led to developers not considering the Town of Frederick.” As part of the new requirement that businesses demonstrate they have the financial means to restore their sites, Frederick is asking the Energy and Carbon Management Commission, formerly the Colorado Oil and Gas Conservation Commission, to order KPK to plug and abandon the 95 low-producing wells. This is an unprecedented move.
In terms of its dedication to the safe and responsible stewardship of the state’s oil and gas resources, Colorado is a national leader. Colorado has enacted precedent-setting regulations over the past few years, from baseline groundwater testing and monitoring to air regulations focusing on methane leak detection and repair. However, there is still a long way to go, and even though it’s a difficult road for the regulators, it’s important that we continue. Operators would prefer consistency, predictability, and time to acclimate to new regulations, but the pace is actually quickening. One stakeholder told us that in the previous five years, she had participated in 25 rule-making programs. Although the state has been active, has it been productive?
Top CO Permitting By Operator
|3||Southern Ute Indian Tribe||8|
|4||Fulcrum Energy Operating LLC||7|
Top Oil Producers
Click above to subscribe to the RARE
PETRO Podcast Network or visit
The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
RARE Petro Analytics