The DJ/Niobrara Basin | January 2023

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- 16 (+3)
Total Rigs in Colorado- 18 (-2)
Total Rigs in the United States- 760 (-11)
Total U.S. Rigs 18% YTD

State Permitting Data
Permits Approved – 68

State Top Producers

Top Producer By BOE – Kerr McGee (Occidental)

Basin Highlights

Polis’s Utility Bills Initiative Gets Frosty Reception From Xcel

In order to lower utility bills, the Colorado Public Utilities Commission, the Colorado Energy Office, and utility companies have been given orders by Governor Jared Polis. Though few of the suggestions will be implemented this year, the governor reaffirmed their call to action by ordering the PUC to find ways to assist customers who are in desperate need, primarily by ensuring that people have access to the state’s help-oriented programs.

Colorado’s natural gas industry pushes back on gas stove study that sparked a national debate

A recent study linking natural gas stoves to childhood asthma has sparked a national discussion about the safety of the appliances, but the oil and gas industry in Colorado is fighting back. However, the study’s authors stand by their conclusions, and a commissioner from the U.S. Consumer Product Safety Commission mentioned recent research on gas stoves when he said a ban on the appliances might be coming. The Colorado Oil and Gas Association’s president and CEO, Dan Haley, stated that the industry’s objective is to increase operations by exporting natural gas produced in the DJ Basin to more international trading partners.

It looks like the Suncor shutdown is driving up gas prices

Suncor Energy temporarily shut down Colorado’s only oil and gas refinery last month, causing gas prices to soar. According to new statistics from the American Automobile Association, the average cost of a standard gallon of petrol in Colorado has risen from $2.86 to $3.82 since Suncor Energy halted production. According to Skyler McKinley, a representative for AAA Colorado, the price increase is most likely attributable to the outage because the refinery typically supplies between 35 and 40% of the gasoline and diesel consumed statewide.

Top CO Permitting By Operator

Top Producers by BOE

Rig Count

Colorado Production

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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