Fracking isn’t new to the Rocky Mountains. The oil industry drilled its first fracking well in Colorado near Boulder in 1901. The practice gained notoriety in the state with the infamous oil shale project near Parachute several decades ago, but it collapsed and remained dormant for years. Since then, fracking has become a modern day gold rush for many people in Colorado. It’s been a nightmare for others.
Unfortunately, health and safety concerns continue to take a back seat in public policy and private practice. The debate is gaining momentum again as oil prices and drilling activity rebound at a rapid pace.
Weld County taps into the Niobrara Shale Foundation, which also covers portions of Kansas, Nebraska, and Wyoming. The second largest area in Colorado for fracking is in Garfield County, which gets its resources from the Piceance Basin. The Piceance Basin is thought to have one of the richest and thickest oil shale deposits in the world. Because Colorado is isolated from the major refining centers, producers must absorb a $12-$14 per barrel discount to cover transportation costs.
Dinosaurs vs. Technology
According to the U.S. Energy Information Center (EIA), Colorado’s production of crude oil surged in 2010. Since then, production has more than tripled in the last five years–peaking in August 2015 at 357 thousand barrels per day (kbd). Subsequently, there was a decrease in production when oil prices crashed from $100 per barrel to $26 per barrel, but the market is rising fast. EIA’s latest Colorado production data from April 2017 puts production at 352 kbd (up from 317 kbd in 2016).
A recent economic report prepared by the Business Research Division of the Leeds School of Business, University of Colorado Boulder for the Colorado Oil and Gas Association found that oil and gas development added $31.7 billion to Colorado’s economy in 2014.
Colorado already is dotted with hydraulic fracking wells/ More are on the way. This growth is reviving the turmoil that accompanied the last boom, pitting neighbors against neighbors and communities against corporations. It’s also reviving talk about collusion, corruption and public policy that ignores public opinion, public health and public safety.
Concerned residents who live near these areas are worried about groundwater contamination, chemical exposure, air pollution impacts, and fracking-induced earthquakes. They also have concerns about industrial accidents.
In few places is the tension more evident than along Colorado’s Front Range, where a fracking boom is colliding with a population explosion. Drilling applications in the state have risen 70 percent in just a year, while the area north of Denver is expected to double in population by 2050.
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