The oil and gas industry’s love affair with the Denver-Julesburg Basin north of Denver is continuing in 2014, with two companies announcing that they’ll each spend several hundred million dollars in the area next year.
The area has boomed in recent years as hydraulic fracturing and horizontal drilling have allowed energy companies to get to oil and natural gas liquids resources. Geologists have long known the reserves were there, but previously they were considered to hard and too expensive to reach.
As drilling rigs have moved into the area, Colorado’s oil production in 2012 broke a 50-year record — a trend that’s likely to continue as energy companies pour more money into the region.
The basin’s two biggest oil and gas companies — Texas-based Anadarko Petroleum Corp. (NYSE: APC) and Noble Energy Inc. (NYSE: NBL) — both have said they plan to spend $1.7 billion — each — in the area in 2013. Noble executives have said the company plans to invest $10 billion in the basin in by the end of 2018.
And now, two companies other companies working in the area — Encana Corp.(NYSE: ECA), based in Calgary, Alberta, Canada, and Denver’s PDC Energy Inc.(Nasdaq: PDCE) — have detailed their spending plans for 2014, including the money they have earmarked for Colorado’s northern Front Range.