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Energy in Colorado

Did you know?

  • The Colorado oil and gas industry employs over 50,000 people directly (roughly 6% of the state's total employment)1
  • In addition to the 50,000 direct jobs, Colorado's oil and gas industry supports over 190,000 jobs throughout the state
  • The oil and gas industry provides $12.4 billion in total labor income and $24 billion in value added economic output annually for the state of Colorado
  • Ten of the largest gas fields in the nation are in Colorado2

 

Hydraulic Fracturing - Did you know?

What is Hydraulic Fracturing (fracing)?

Hydraulic Fracturing (fracing) is the process of pumping pressurized water, sand and additives (99.5% water and sand .5% highly diluted additives) into targeted sections of a shale formation to create millimeter-thick fractures that allow access to otherwise out of reach resources.

Is Hydraulic Fracturing used in Colorado?

  • Yes – Fracing was essential to the development of resources in the Wattenberg Field along the Front Range as well as in the Piceance basin in Western Colorado.
  • Fracing will be essential to accessing the resources trapped in the Niobrara shale, a massive shale formation that spans from Canada all the way south into New Mexico.
  • The most productive areas of the Niobrara shale are found in the Denver-Julesberg basin in Northeastern Colorado & Southeastern Wyoming.3

 

What if Hydraulic Fracturing was banned?

According to a 2009 Insight Global Study:

  • Within 5 years there would be a decrease of nearly 79% in wells completed.
  • By 2014 the United States would experience a 17% reduction in oil production AND a 45% decline in natural gas production.

 

RESULT: 2.9 million U.S. jobs lost by 2014


  1. “Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor, Income and Value Added,” Prepared for API by PriceWaterhouseCoopers – September 2009
  2. EIA, Colorado Energy Profile, http://205.254.135.24/state/state-energy-profiles.cfm?sid=CO
  3. Colorado Oil and Gas Association “The Niobrara Play – Meet the Niobrara”, 2011
Common Sense Policy Roundtable is a non-profit free-enterprise think tank dedicated to the protection and promotion of Colorado's economy. CSPR actively follows tax and budget related legislation and initiatives.
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