Colorado’s economy is expected to reap $4 billion a year from a new oil and natural gas field in the state’s Front Range area, according to a report today in the Denver Post
The Houston-based drilling company Anadarko estimates that the Front Range reserves could yield as much 500 million to 1.5 billion barrels, with production running about 70 percent oil and the rest in natural gas.
“This is going to have huge implications for the economy of Colorado,” Pete Stark, vice president for industry relations at IHS, a Denver-based consulting firm, told the Post.
Stark estimated that the new finds could generate 150,000 barrels a day and — assuming oil stays around $80 a barrel — could provide more than $4 billion in new annual revenues to the state.
In a statement, Gov. John Hickenlooper said the Anadarko announcement on Monday about the new oil finds “shows once again that Colorado is a leader in the energy sector of our country’s economy. We are thrilled to see the company plan a significant investment in Colorado.”
Anadarko drilling in Colorado currently averages about 800 barrels a day.
But the Post reported that the company plans to quadruple its current drilling pace and open up somewhere between 1,200 and 2,700 new wells in the state.
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