After years of claiming Colorado's new oil and gas regulations will chase the energy industry and its jobs from the state, oil and gas operators and an industry group are now saying the rules will have little impact on future energy development here.
That comes after an oil well called "Jake" drilled by EOG Resources near the town of Grover in northern Weld County's Niobrara Formation gushed more than 1,700 barrels of oil in one day last October. The gusher is giving the industry and Weld County hope that a new oil field with more than 17,000 wells could be developed near the Wyoming border, sending newfound economic prosperity pulsing through the region.
Already, EOG Resources is hauling two more oil rigs this month to start expanded development of the new oil field, said Mark Cutright, a member of the Colorado Oil and Gas Conservation Commission.
The new rules, which took effect in April and were developed by Gov. Bill Ritter and his administration, require energy companies to employ "best management practices" to protect wildlife and consult with state wildlife officials about sensitive habitat before drilling. They also require companies to follow a slate of other requirements to safeguard the environment.
Rep. Cory Gardner, R-Yuma, said in January that the rules present an unfriendly regulatory environment for the industry in Colorado and they'll drive jobs out of the state.
Oil and gas activity dropped last year from its boom days in 2008, but 2009 saw more oil and gas activity in Colorado than any other Rocky Mountain state. Weld County saw oil and gas well permitting drop to 2006 levels last year, according to COGCC data.
Weld County Commissioner Sean Conway said in January that despite the faltering economy, “it is both naïve and incorrect to say these rules did not have a profound impact” on Weld County as energy jobs fled to other states.
Last week, Conway called the gusher well a “huge find,” producing very sweet crude and pointing to the possibility of an expansive oil field along the Colorado-Wyoming border.
