Ballot Measure Would Block Energy Revenues Where Development is Banned

Colorado State Capitol

Colorado State Capitol

March 20, 2014 By Colorado Observer Staff

Local communities that ban oil and gas development would be blocked from receiving tax revenues collected from those efforts in other parts of the state under a new ballot initiative filed Thursday by state lawmakers.

State Rep. Jerry Sonnenberg (R-Sterling) and Rep. Frank McNulty (R-Highlands Ranch) say their ballot question for the November election would ensure that energy funds are returned to the communities where it is generated and not misdirected to those that oppose energy development.

“While only a small handful of liberal communities have taken the draconian, anti-science step of banning hydraulic fracturing and energy development, the policy is an important one – if you adopt Sierra Club type energy bans that hurt our communities and our schools, don’t expect energy revenues to pick up your tab,” said former House Speaker McNulty. Continue reading “Ballot Measure Would Block Energy Revenues Where Development is Banned” »

Share Button
Posted in Uncategorized | Tagged , , , , , | Leave a comment

Whiting’s Niobrara Reserves And Top Shale Oil Producers’ 2013 Reserve Replacement Ratios

'Whiting_Petroleum_Corporation_LogoMichael Fitzsimmons Seeking Alpha - March 3, 2014

Today, I will take a look at the 2013 reserve replacement ratios (“RRR”) for major shale oil producers ConocoPhillips (COP), Continental Resources (CLR), EOG Resources (EOG), and Whiting Petroleum (WLL). While all these companies produced very good to outstanding results, the most interesting reserves report came out of Whiting Petroleum and the component of reserves coming from the company’s Niobrara operations in Colorado.

The RRR is defined as the amount of proved reserves added to a company’s proven reserve base in a given year relative to the amount of oil and gas produced during the year. Long-term, a company’s reserve replacement ratio must be at least 100% for the company to stay in business. Otherwise, it will eventually run out of oil. Obviously, the higher the RRR, the more bullish the company’s future. Here is the 2013 RRR summary for these top shale oil producers:

Continue reading story at Seeking Alpha

Share Button
Posted in Drilling | Tagged , , , | Leave a comment

Guar Beans and Hydraulic Fracturing

Gavar Bean Cluster - Photo Credit - Wikipedia

Gavar Bean Cluster – Photo Credit – Wikipedia

Article from Geology.com

A Bean that Turns Water into Gel
Powder made from the bean of a relatively unknown plant grown in India and Pakistan can quickly turn water into a very thick gel. The beans are typically used to thicken sauces and processed foods such as ice cream and ketchup. Now, drilling companies who need high-viscosity water to extract oil and natural gas from tight rock formations are buying up guar beans as fast as they are grown.

The surge in demand has multiplied prices and lured many new farmers into the guar bean business. Historically, India and Pakistan have produced over 80% of the worldwide supply of guar beans. However, farmers in Texas, Oklahoma and other states are now planting guar beans to take advantage of these high prices. Continue reading “Guar Beans and Hydraulic Fracturing” »

Share Button
Posted in Drilling, HydroFracking | Tagged , , , , | Leave a comment

Southwestern Energy buying Shell, Quicksilver assets in NW Colorado for $180M

Southwestern_Energy_LogoCathy Proctor - Reporter-Denver Business JournalMarch 6, 2014


Southwestern Energy Co.
 is buying big into northwest Colorado’s Niobrara play.

It’s looking to pump crude oil, natural gas liquids and natural gas from assets jointly owned by Texas company Quicksilver Resources Inc. and SWEPI LP, a subsidiary of global energy company Royal Dutch Shell plc.

Southwestern (NYSE: SWN), based in Houston, announced it will pay $180 million for about 312,000 net acres of mineral leases in northwest Colorado. The acreage was jointly owned by Quicksilver and SWEPI.

The deal is expected to close in the second quarter.

Shell, SWEPI’s parent company, announced last year that it would sell its Colorado assets, and shut down its oil shale research and development project.

The moves came after the company wrote down $2 billion worth of its North American shale assets due to lackluster results.

Continue reading story at The Denver Business Journal

Share Button
Posted in Drilling | Tagged , , , , , , | Leave a comment

‘VITAL FOR COLORADO’ TO RALLY BUSINESS, CIVIC LEADERS IN SUPPORT OF BALANCED STATEWIDE OIL AND GAS DEVELOPMENT

Vital_For_Colorado_LogoVITAL CHAIRMAN: “It isn’t just oil and gas companies who will suffer if these attempts to hijack our state’s energy policy succeed. The entire economy of this great state – from men and women working along the main streets of rural Colorado to those occupying the high rises in downtown Denver – will suffer dramatically if this anti-oil and gas extremism prevails”

For Immediate Release: Contact: Peter Moore (pmoore@polsinelli.com)
March 5, 2014

Denver – A coalition of the leading business and civic organizations across the state of Colorado, calling itself Vital for Colorado, has formed to advocate for a responsible oil and gas policy, it was announced today. The group’s launch comes amid various attempts by environmental activists to make it easier for local governments to ban energy development. “Colorado is a state known for a balanced, thoughtful approach to doing business,” said Peter Moore, a local attorney and Chairman of the Board for Vital for Colorado. “As narrow-minded interest groups try to undo that balance in our energy policy, Vital for Colorado is determined to tell the rest of the story, from the vantage of business men and women across this state. Continue reading “‘VITAL FOR COLORADO’ TO RALLY BUSINESS, CIVIC LEADERS IN SUPPORT OF BALANCED STATEWIDE OIL AND GAS DEVELOPMENT” »

Share Button
Posted in Drilling, Economy, HydroFracking, Mineral Rights | Tagged , , , , , , , | Leave a comment

Colorado bill might reinstate eminent-domain power for oil and gas companies

Existing Natural Gas Pipeline on the Lowry Bombing Range

Existing Natural Gas Pipeline on the Lowry Bombing Range – Click to Enlarge

Ed Sealover Reporter- Denver Business Journal - February 27, 2014

Oil and gas companies had eminent-domain power for the paths of their pipelines for 105 years until the Colorado Supreme Court reinterpreted a dusty, old state law in 2012 — right as the current industry boom was starting to heat up.
Industry leaders say the stripping of this power hasn’t hurt growth yet, but they are concerned it will become an obstacle shortly as more fuel suppliers become interested in the increasing amount of product coming out of the Niobrara and other Colorado basin areas. Continue reading “Colorado bill might reinstate eminent-domain power for oil and gas companies” »

Share Button
Posted in Uncategorized | Tagged , , , , , , | Leave a comment

Another anti-fracking measure could be headed to November ballot

Hydraulic Fracturing Illustration - Idealized

Hydraulic Fracturing Illustration – Idealized

Local Control Colorado latest group to attempt to give more power to local governments over oil and gas activity

By John Aguilar, Camera Staff Writer

More anti-fracking fervor could be headed to the ballot this year, as a new coalition this week announced plans to collect signatures as part of an effort to get a measure in front of voters in November that would give cities and towns more control over oil and gas drilling inside their borders.

The group, called Local Control Colorado, consists partially of anti-fracking organizations that have formed in Boulder and Broomfield counties over the last year or so. They include Our Broomfield, Our Longmont and Boulder County Citizens for Community Rights. Continue reading “Another anti-fracking measure could be headed to November ballot” »

Share Button
Posted in Drilling, HydroFracking, Regulations | Tagged , , , , | Leave a comment

Colorado adopts tougher air rules for oil, gas industry

Colorado_State_SealBy Bruce Finley - The Denver Post - February 24, 2014

Colorado adopted tougher air pollution rules for the oil and gas industry — the first in the nation to cover methane, a gas linked to climate change.

State air quality control commissioners voted 8-1 on Sunday to pass the rules with the support of leading operators Anadarko Petroleum, Noble Energy and Encana.

But they did so over the protests of much of the oil and gas industry, including the powerful Colorado Oil and Gas Association and Colorado Petroleum Association trade groups. Continue reading “Colorado adopts tougher air rules for oil, gas industry” »

Share Button
Posted in Environment | Tagged , , , , , | Leave a comment