Reality Check: Colorado’s oil and gas industry is alive and well

Of Colorado Public Radio Ben Marcus This week, it was reported that if you believe that Republicans and the energy industry’s propaganda that has been flooding the airwaves since the passage of the groundbreaking reform oil and gas control bill SB19-181 Three years ago in Colorado, it seemed inconceivable:

The number of active oil rigs in Colorado nearly doubled last year, a sign that high prices are reviving the industry.

Oil production in Colorado fell 11 percent in 2021, continuing a slide that began with a dramatic decline in the Covid-19 epidemic, new regulations make drilling more expensive and investors need more caution from producers.

Colorado companies pumped 152 million barrels of oil last year, according to the latest data from the Colorado Oil and Gas Conservation Commission. This is the lowest production since 2017, and the record number in 2019 is more than 20 percent.

But this year, Ukraine’s war has disrupted the energy market, and demand is growing as the epidemic eases. More than $ 100 a barrel has been shipped in recent weeks, beyond what is needed to profitably dig wells in Colorado. [Pols emphasis] According to Baker Hughes, the number of drill rigs opening new wells in Colorado increased from eight in March 2021 to 14 at the end of this month. This indicates more oil production.

Dan Haley of the Colorado Oil and Gas Association.

As it turns out, when oil prices fall below zero as a result of the historic crash of demand during the global epidemic, energy companies stop producing! Of course, if this happens right after the enactment of legislation in a particular state to protect the public health in order to “observe” the oil and gas industry, then oil companies will have the comforting bonus of blaming their political opponents worldwide in that state. Energy production is slow.

Which, readers know, they did.

But as you can see, there is an amazing way to cut through the red tape of $ 100-a-barrel of oil. When it is profitable to increase production, such as the all-female dinosaur team Jurassic Park, Somehow Find a way to art! At one point, of course – no matter how much oil is sold, production capacity cannot be expanded immediately and drillers know this:

Although the industry wants to increase production, it does not have enough workers to operate rigs and wells. Many have died during the Great Depression. Mining and logging employment in Colorado fell by about 10,000 workers, down from 29,000 in 2019 to 19,000 in 2022, the lowest number since 2006.

“Even if the industry wants to increase production.” Does everyone understand that the industry doesn’t really want to do this? The sample is true that high oil prices Financially good for oil companies, Which means they have the world’s oldest reluctance to lower energy prices as long as demand remains strong. The industry frankly acknowledges to its shareholders that they should not increase production for the sake of net profit এমনকি even if they openly shout for new leases and permits তারা they cannot develop within a time frame that affects the current crisis.

The long-term solution to the volatile energy prices and the foreign complexities they are forcing nations to participate in is to reduce the demand for fossil fuels by adopting renewable energy substitutes, which may also be a plan to combat much of the world. Considered to be the biggest long-term threat to the survival of humanity.

Until we get there, the most important thing we can do is be smart and honest with what we have.

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