Colorado production faces possibility of large declines under setbacks: Platts Analytics

摘要

Denver-As Colorado operators face the new reality of 2,000-foot drilling setbacks in early 2021, oil and gas production in Weld County, the most prolific in the Denver-Julesburg Basin, could decline by 90,000 b/d and 400 MMcf/d, respectively, over the next several years. The setback applies to pending and future permits on new well locations and their proximity to occupied structures such as homes and schools. In preparation for this new guideline, producers have created a backlog of approved and pending permits. According to the Colorado Oil and Gas Conservation Commission there have been 1,125 drilling permits approved in Weld County over the past 12 months. Approved permits are valid for two years.