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Editor's note: The following article has been corrected to reflect that two Democrats joined Republicans in voting against the bill.
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Colorado Senate Committee on Agriculture & Natural Resources voted 5-2 late last Thursday to postpone further consideration of a contentious bill, SB24-159, that would ban new oil and gas drilling in the state after 2030.
The vote followed about six hours of often-impassioned comments from approximately 200 people. There were so many people who wanted to be heard on the measure that each speaker was limited to 90 seconds.
Last Thursday's testimony replayed longstanding arguments for and against limiting or prohibiting oil and gas drilling in Colorado.
SB24-159 would have required the state to phase out issuing new oil and gas permits before January 1, 2030, and prevent new permits for oil and gas after that date. The measure also would have toughened environmental mitigation measures for oil and gas operations.
About two weeks before the March 27 senate hearing, SB24-159 was assessed by the nonpartisan Legislative Council Staff. It found that the bill, if enacted into law, would have a significant impact on Colorado's revenue and expenditures on an ongoing basis. If enacted, the bill would cut state revenue by about $305 million by fiscal year 2034-2035, and cause the state to increase expenditures by about $476 million by that date, according to the nonpartisan fiscal assessment.
The Oil and Gas Industry strongly opposed SB24-159, which was introduced by two Democratic senators in February. Standing by the industry were representatives of Colorado county governments, economic development groups, small business organizations, farmers, ranchers and some concerned individuals.
In Thursday's testimony, several opponents of SB24-159 referenced parts of the nonpartisan legislative fiscal report. Opponents called the bill an "economic suicide pact" and "a disaster." A retired meteorologist spoke against the bill, asserting "there was no climate emergency."
Testimony supporting SB24-159 came from medical doctors, public health professionals, environmentalists, parents, environmental justice advocates, educators, community groups and individual citizens. Several asserted oil and gas production was a "toxic" industry. Others asserted the industry has been less than fully honest about how the production of oil and gas contributed to global warming. Several speakers questioned the need for new wells given that the state already was struggling to pay for plugging "orphan" wells after an owner goes out of business.
Supporters of renewable energy and oil and gas development have crossed swords for years over hydraulic fracturing in the Centennial State. Oil and gas producers won last Thursday's skirmish, but the state's longstanding "energy wars" likely will continue.
The bill that was voted upon March 27 also had two Democratic backers in the Colorado House, so a companion bill may be considered there. Democrats hold a majority in both houses of state government, and the governor is a Democrat as well. But the issues of renewable energy and hydraulic fracturing do not cut along party lines: The Senate Agriculture and Natural Resources Committee has a 4-3 Democratic majority, but two Democrats joined Republican members last Thursday in voting against the bill.
Even if the clock runs out in the current legislative term to try to limit or end oil and gas operations in the state, critics and supporters of hydraulic fracturing want to place as many as 10 energy initiatives on this November's ballot. Those proposed measures are being reviewed by the Colorado Secretary of State. As each proposed ballot measure is approved, its backers will collect signatures from voters in the state. To appear on the November ballot, each proposed measure must collect 124,959 valid signatures by April 17. For more on the initial flaring of this year's energy battle, see February 16, 2024, article - Energy Wars Return to Colorado.
Industrial Info is tracking about $35 billion in planned Power and Oil and Gas Production projects in the state may be affected by how this year's installment of Colorado energy wars plays out. Industrial Info does not expect all of those projects will begin construction according to their current schedule. But, depending on which ballot measures come to Colorado voters this November, the number of proposed projects could change.
Early in the state legislative session, Colorado's oil and gas interests detected that ballot initiatives to phase out their livelihoods were being prepared. So they launched a media campaign, with particular emphasis on television ads, highlighting the potentially deleterious impact the bill could have on Colorado's economy. That ad campaign continues to this day.
In February, oil and gas-funded groups also filed two ballot initiatives with the Secretary of State's office that would enable Coloradans to have "choice" in their energy. If those measures are certified and appear on the November ballot, and Coloradans approve them, they would upend the state's renewable energy standard, which mandates that 100% of the state's electricity be produced by non-emitting resources by 2050.
Environmental and community groups responded with one proposed ballot initiative that would further limit oil and gas operations. Then matters really heated up in March when a total of seven new proposed ballot measures were filed. Each seeks to limit or cripple the other side.
In 2022, Colorado was the nation's fifth-largest producer of crude oil and the eighth-largest producer of natural gas, according to the U.S. Energy Information Administration (EIA) (Washington, D.C.). In its monthly the monthly Drilling Productivity Report, the agency estimated that the Niobrara Shale Formation, which is mainly in Colorado, will produce about 712,000 barrels of oil per day (BBL/d) in April, close to its historic peak of about 800,000 BBL/d, set in 2019. Gas production from that formation will average approximately 5.4 billion cubic feet per day (Bcf/d) this month, not far below that formation's historic peak of about 6 Bcf/d, set in early 2020, the agency said.
Click on the image at right to see historic and current oil and gas production from the Niobrara Formation.
Renewable electric generation in Colorado has quadrupled between 2010 and 2022, the EIA continued. In 2022, about 40% of the state's electricity came from renewable resources, the EIA said, adding that gas accounted for about 25% of the state's electricity fuel mix in that year.
By 2029, more than 2,500 megawatts (MW) of coal-fired generation in Colorado is slated to be retired, the EIA said in its profile of Colorado's energy. Renewables and gas are fighting to replace coal, which generated about 35% of the state's electricity in 2022, the agency said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Colorado Senate Committee on Agriculture & Natural Resources voted 5-2 late last Thursday to postpone further consideration of a contentious bill, SB24-159, that would ban new oil and gas drilling in the state after 2030.
The vote followed about six hours of often-impassioned comments from approximately 200 people. There were so many people who wanted to be heard on the measure that each speaker was limited to 90 seconds.
Last Thursday's testimony replayed longstanding arguments for and against limiting or prohibiting oil and gas drilling in Colorado.
SB24-159 would have required the state to phase out issuing new oil and gas permits before January 1, 2030, and prevent new permits for oil and gas after that date. The measure also would have toughened environmental mitigation measures for oil and gas operations.
About two weeks before the March 27 senate hearing, SB24-159 was assessed by the nonpartisan Legislative Council Staff. It found that the bill, if enacted into law, would have a significant impact on Colorado's revenue and expenditures on an ongoing basis. If enacted, the bill would cut state revenue by about $305 million by fiscal year 2034-2035, and cause the state to increase expenditures by about $476 million by that date, according to the nonpartisan fiscal assessment.
The Oil and Gas Industry strongly opposed SB24-159, which was introduced by two Democratic senators in February. Standing by the industry were representatives of Colorado county governments, economic development groups, small business organizations, farmers, ranchers and some concerned individuals.
In Thursday's testimony, several opponents of SB24-159 referenced parts of the nonpartisan legislative fiscal report. Opponents called the bill an "economic suicide pact" and "a disaster." A retired meteorologist spoke against the bill, asserting "there was no climate emergency."
Testimony supporting SB24-159 came from medical doctors, public health professionals, environmentalists, parents, environmental justice advocates, educators, community groups and individual citizens. Several asserted oil and gas production was a "toxic" industry. Others asserted the industry has been less than fully honest about how the production of oil and gas contributed to global warming. Several speakers questioned the need for new wells given that the state already was struggling to pay for plugging "orphan" wells after an owner goes out of business.
Supporters of renewable energy and oil and gas development have crossed swords for years over hydraulic fracturing in the Centennial State. Oil and gas producers won last Thursday's skirmish, but the state's longstanding "energy wars" likely will continue.
The bill that was voted upon March 27 also had two Democratic backers in the Colorado House, so a companion bill may be considered there. Democrats hold a majority in both houses of state government, and the governor is a Democrat as well. But the issues of renewable energy and hydraulic fracturing do not cut along party lines: The Senate Agriculture and Natural Resources Committee has a 4-3 Democratic majority, but two Democrats joined Republican members last Thursday in voting against the bill.
Even if the clock runs out in the current legislative term to try to limit or end oil and gas operations in the state, critics and supporters of hydraulic fracturing want to place as many as 10 energy initiatives on this November's ballot. Those proposed measures are being reviewed by the Colorado Secretary of State. As each proposed ballot measure is approved, its backers will collect signatures from voters in the state. To appear on the November ballot, each proposed measure must collect 124,959 valid signatures by April 17. For more on the initial flaring of this year's energy battle, see February 16, 2024, article - Energy Wars Return to Colorado.
Industrial Info is tracking about $35 billion in planned Power and Oil and Gas Production projects in the state may be affected by how this year's installment of Colorado energy wars plays out. Industrial Info does not expect all of those projects will begin construction according to their current schedule. But, depending on which ballot measures come to Colorado voters this November, the number of proposed projects could change.
Early in the state legislative session, Colorado's oil and gas interests detected that ballot initiatives to phase out their livelihoods were being prepared. So they launched a media campaign, with particular emphasis on television ads, highlighting the potentially deleterious impact the bill could have on Colorado's economy. That ad campaign continues to this day.
In February, oil and gas-funded groups also filed two ballot initiatives with the Secretary of State's office that would enable Coloradans to have "choice" in their energy. If those measures are certified and appear on the November ballot, and Coloradans approve them, they would upend the state's renewable energy standard, which mandates that 100% of the state's electricity be produced by non-emitting resources by 2050.
Environmental and community groups responded with one proposed ballot initiative that would further limit oil and gas operations. Then matters really heated up in March when a total of seven new proposed ballot measures were filed. Each seeks to limit or cripple the other side.
In 2022, Colorado was the nation's fifth-largest producer of crude oil and the eighth-largest producer of natural gas, according to the U.S. Energy Information Administration (EIA) (Washington, D.C.). In its monthly the monthly Drilling Productivity Report, the agency estimated that the Niobrara Shale Formation, which is mainly in Colorado, will produce about 712,000 barrels of oil per day (BBL/d) in April, close to its historic peak of about 800,000 BBL/d, set in 2019. Gas production from that formation will average approximately 5.4 billion cubic feet per day (Bcf/d) this month, not far below that formation's historic peak of about 6 Bcf/d, set in early 2020, the agency said.
Renewable electric generation in Colorado has quadrupled between 2010 and 2022, the EIA continued. In 2022, about 40% of the state's electricity came from renewable resources, the EIA said, adding that gas accounted for about 25% of the state's electricity fuel mix in that year.
By 2029, more than 2,500 megawatts (MW) of coal-fired generation in Colorado is slated to be retired, the EIA said in its profile of Colorado's energy. Renewables and gas are fighting to replace coal, which generated about 35% of the state's electricity in 2022, the agency said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
