The DJ/Niobrara Basin | January 2022
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 ( +1)
Total Rigs in Colorado- 12 (-)
Total Rigs in United States- 610 (+24)
Total U.S. Rigs 59% YTD
State Permitting Datahttps://rarepetro.com/dj-niobrara-news-pulse-january-2022/https://rarepetro.com/dj-niobrara-news-pulse-january-2022/
Permits Approved – 57
State Top Producers
Top Producer By BOE – Kerr McGee (Occidental)
Out of good faith Civitas Resources announced that they are voluntarily plugging 42 of the 410 total abandoned wells in Colorado. The wells were previously orphaned by other operators in the area that Civitas is now operating in. This move by Civitas sets a good example for other Colorado operators and they hope others will follow in their footsteps as Colorado’s first carbon neutral oil and gas producer. “We are proud to eliminate these wells for the benefit of the communities where we live and work,” said Civitas Chief Sustainability Officer.
Wyoming has ambitious goals to become not only carbon neutral but carbon negative, the top coal producer in the country believes carbon sequestration will be the key to reaching those goals. Tallgrass received a state grant to fund their commercial carbon capture and sequestration project in the DJ basin of Wyoming. The fund will be utilized in 2022 to begin drilling wells and other development activities. If the project goes to plan it will be the beginning of a carbon sequestration network stretching multiple states.
While the number of orphaned wells in Colorado is up for debate, and much closer to the several hundred mark, the fact remains that they are there and they need to be plugged. The Department of Interior has set aside $1.4 billion to help cover the costs of plugging and abandoning wells across the country. While Texas has already received $108 million, Colorado is requesting just $25 million to clean up the state’s growing number of orphaned wells. COGCC will soon require drillers to show proof of their financial ability to properly abandon a well site.
Top CO Permitting By Operator
|1||Red Willow Production||15|
|2||Kerr McGee (Occidental)||12|
Top Producers by BOE
|Change||Rank||Company||BOE Production (mmBOE) (01/22)|
|–||1||Kerr McGee (Occidental)||79.8|
|+3||4||Extraction Oil & Gas (Civitas)||32.9|
|+2||5||Caerus Oil & Gas||27.5|
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