Natural Gas
Natural gas that is a rich fossil fuel trapped in Colorado's shale formations. Through the use of directional drilling and hydraulic fracturing, developers have been able to access large deposits of natural gas in Colorado shale plays.
Hydraulic fracturing is a process by which fracturing fluids, comprised of more than 99.5% water and sand and less than .5% chemicals, are injected under high pressure into a shale formation. This creates fissures that free the natural gas to flow out from where it is currently trapped. All hydraulic fracturing in Colorado is governed by the Colorado Oil and Gas Conservation Commission which oversees every aspect of the process.
The Denver Basin
The Denver Basin — also known as the Julesburg Basin, Denver-Julesburg Basin and the DJ Basin — is a large formation located in northeast Colorado and southeast Wyoming and contains the Niobrara Formation.
Since the early 1900s, the Denver Basin has produced about 12.5 trillion cubic feet of natural gas equivalent and is currently the site of about 20,000 active wells.
The largest energy-producing area in Colorado is the Wattenberg Field, located in the Niobrara Shale Formation. The Wattenberg Field produces both natural gas and oil. (Source: American Petroleum Institute)
Click here to learn more about the Wattenberg Field.
The Piceance Basin
Located in northwest Colorado, the Piceance Basin is home to large deposits of natural gas. Advancements in the process of hydraulic fracturing has yielded 5 of the top 50 natural gas proven reserves in the country — #16 Grand Valley, #24 Parachute, #27 Mamm Creek, #29 Rulison, and #46 Piceance Creek.
The Raton Basin
Located near the Colorado-New Mexico border, the Raton Basin is home to an estimated 28.1 million barrels of natural gas (Source: U.S. Geological Survey)
San Juan Basin
The San Juan Basin in the southwest corner of Colorado, extending south into New Mexico, is the largest natural gas source in the United States. It is also the most productive coal-bed methan basin in North America.
Coal-bed methane is a by-product of the formation from plant material. The methane becomes trapped in the coal as the result of high temperatures and pressures, and remains there as long as the water table is above the coal. Through drilling wells directly into the coal, the gas and water can rise to the surface to be processed into clean and dry methane gas. The San Juan Basin is significant for being one of the first areas where successful production of coal-bed methane was demonstrated. (Source: American Petroleum Institute).
It is estimated that the basin could produce more than 50 trillion cubic feet of natural gas, 148 barrels of natural gas liquids and between 7 and 35 million barrels of oil. (Source: Economic Development Commission of Lea County).
Colorado's shale formations contain a significant volume of natural gas that can continue to generate energy, jobs and revenue for the state. Processes such as horizontal drilling and hydraulic fracturing are necessary to uncover this clean energy resource. With decades of experience and no proven damage to the environment, Colorado must be able to continue development of these rich energy stores.
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