With Gas Prices High, Colorado Oil Production is Ramping Up
The number of active oil wells in Colorado has nearly doubled in the last year. Is it a sign that high prices are bringing the industry back to life? What’s next with the Colorado oil production?
Production in Colorado had fallen 11 percent in 2021, continuing a slide that began as the COVID-19 pandemic dramatically reduced demand. New regulations made drilling more costly and investors started requiring more caution from producers.
Companies in Colorado pumped 152 million barrels of oil last year. This is according to the latest data from the Colorado Oil and Gas Conservation Commission. That’s the lowest production since 2017, and more than 20 percent off record numbers in 2019.
But this year, the war in Ukraine has disrupted energy markets and demand is rising as the pandemic eases, sending prices over $100 a barrel in recent weeks, well beyond what’s needed to profitably drill wells in Colorado. The number of drill rigs opening new wells in Colorado jumped from eight in March 2021 to 14 at the end of this month, according to Baker Hughes. That indicates more oil production is on the way.
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Source: CPR News
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