New anti-fracking laws are having an effect in new investment and fracking in the Denver-Julesburg Basin that’s according to industry insiders, The resulting uncertainty over how local authorities will use their newfound power has nearly halted energy deal activity, including acreage purchases.
ConocoPhillips tried to sell its Colorado acreage for more than $1 billion late last year but failed to find a buyer, according to three sources familiar with the deal. [read more]
But not all is doom and gloom, At PDC Energy, one of the largest producers of oil and natural gas in Weld County, we remain committed to continuing to develop our assets in the county,” PDC’s Courtney Loper said in a written statement. “We plan to invest around half a billion dollars in Weld County in 2019, with a similar level of activity expected in 2020.”
“We will continue working closely with Weld County on the required local permits and agreements, and we do not foresee any substantive changes to this development plan,” Noble Energy’s Brian Miller said in a written statement. – Noble Energy – @ greeleytribune.com
From what we can see, those that are in it to frack in Colorado are gonna continue to frac, those that want to sell their share are having a hard time convincing others to do business in Colorado.
Drilling permits are down 60% in Colorado
Five months after the new anti frac law took effect, drilling permits are down 60% from the last decade average, one operator has declared bankruptcy, and 10 local communities have passed moratoriums on new drilling. – denver.cbslocal.com
More Oil With Less Drilling Rigs
According to a recent Bloomberg story: “In June 2014, the U.S. pumped 8.4 million barrels of crude using 1,545 drilling rigs. Last month, it produced about 12.2 million barrels, 45% more, with just 788 rigs.”
For the rest of the industry, this is wonderful news, but for oilfield services companies large and small, these efficiencies have caused severe overcapacity and economic pain. more with less @ fool.com
The U.S Removes 12 Oil Rigs: Oil rig count was 742, down from 754 in the week ended Aug 23. Notably, the tally has never dropped to such a level since early January 2018. In the past nine weeks, drillers lowered the tally eight times. The current total, far from the peak of 1,609 attained in October 2014, is also lower than 862 a year ago.
Severe overcapacity and economic pain?
Halliburton Cuts 8% of North American Fracking Jobs. Christopher Wright Talks About the Slowdown in Fracking