Companies’ oil-drilling plans unchanged
Two major Colorado natural gas producers who have turned their attention to drilling for oil elsewhere say they’re continuing to pursue that strategy for now even as oil prices drop, but they still plan to be flexible so they can renew their focus on natural gas development if natural gas prices improve.
“We like having different investment options,” said WPX spokesman Kelly Swan, because the western Colorado Piceance Basin is so rich in natural gas opportunities.
Doug Hock, a spokesman with Encana, said his company has pursued a strategy it calls “optionality,” the ability to focus on gas or oil depending on which commodity has higher prices.
For now, however, the two companies don’t appear ready to back off their oil emphasis.
“That’s likely not going to change in 2015 even with the change in prices,” Hock said.
A year ago, Encana suspended its longtime local drilling program because of low natural gas prices and its desire to focus on oil and liquids-rich drilling elsewhere.
WPX said its strategy to grow its oil production five-fold and triple the size of the company by 2020 hasn’t changed, the Grand Junction Daily Sentinel reported Sunday.
WPX’s stock has had a tough time because of the declining price of oil, falling from about $26 to $12 per share over the last three months. Encana’s stock likewise has fallen, from about $25 to $17 during that same time.
EPA rules could hurt coal supplier
A northeastern Utah power plant supplied by a coal mine in Colorado would have to install new air-pollution controls under an Environmental Protection Agency proposal issued this week.
The proposal applies to Deseret Power Electric Cooperative’s Bonanza Power Plant and would reduce nitrogen oxide emissions. The plant is supplied by Deseret’s Deserado Mine near Rangely in northwest Colorado and is the mine’s sole customer.
According to the Grand Junction Daily Sentinel, Deseret general counsel David Crabtree says Deseret is still reviewing the EPA proposal and will be providing comments to the agency.
Associated Press
