The DJ/Niobrara Basin | July 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- 14 (-)
Total Rigs in Colorado- 14 (-)
Total Rigs in the United States- 664 (-10)
Total U.S. Rigs 12.4% YTD

State Permitting Data
Permits Approved (10/1/2022 to 4/30/2023) – 35

State Top Producers

Top Producer By BOE – Kerr McGee (Occidental)

Basin Highlights

New Rules from the AQCC Finally Implemented

The Air Quality Control Commission approved the rule’s structure in late 2021, but it took another 18 months of discussions to agree on a key component – how to measure and monitor pollutants. No other state has a federal rule or program that is comparable. As required by law, Colorado must reduce its greenhouse gas emissions from 2005 levels by 26% by 2025, 50% by 2030, and 90% by 2050. The rule is a part of that endeavor. After electricity generation and transportation, the oil and gas sector is Colorado’s third-largest source of greenhouse gas emissions. By 2030, energy emissions must be reduced by 20% from 2015 levels. Operators will be needed to have some sort of ground monitors or measurements in order to accomplish that, and the records of those devices will be checked by a different author. State air regulators will conduct surface, fixed-wing, and satellite measurements simultaneously.

COGCC Becomes Energy & Carbon Management Commission

Colorado’s Oil and Gas Conservation Commission will now be known as the Energy and Carbon Management Commission within the Department of Natural Resources. The hire of three engineers will be part of the commission’s budget for the first two years. Additionally, lawmakers approved funding for four areas of research, including a $175,000 geothermal study. The costs of developing rules, engaging the community ($50,000 annually), coordinating amongst agencies, creating databases and forms, rebranding the commission ($25,000), and updating the commission’s website ($100,000) will also be funded. According to the budget note, it will take about two years to involve stakeholders and develop rules.

No More Gas-Powered Yard Equipment

After a crucial regional advisory board approved the ban as a successful tactic, state air quality officials are set to vote before the end of the year on a 2025 ban on the sale of push or hand-held, gasoline-powered lawn equipment in nine Front Range counties with ozone problems. The restrictions would apply to all counties where, according to the EPA, air pollution exceeds ozone attainment limits and endangers the heart and lung health of millions of citizens. They would not be statewide. If authorized by the state Air Quality Control Commission after discussions this autumn, the ban would apply to sales and use in Denver, Douglas, Arapahoe, Jefferson, Adams, Broomfield, Boulder, Weld, and the non mountainous areas of Larimer counties.

Top CO Permitting By Operator

Top Oil Producers

Rig Count

Colorado Production

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