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News for Norther Colorado and the world

Tuesday, July 29, 2014

Coffman gets it wrong

oil well pumper0011 Coffman gets it wrong

 

 

Editorial Opinion

Colorado congressman Mike Coffman, representative for the 6th Congressional District, released this statement about President Obamas remarks about rising gas prices. We invite Representative Coffman to try sticking to the facts. He is obviously ill informed about production in the United States and even more so about production in his own state. If we were Politifact, we would award Coffman a “pants on fire” for these comments even though a corrected release added the words “on public lands” to his statement. 

There are more than 11 wells in Weld County alone. Those leases are primarily on private property.  Is it possible that Representative Coffman does not understand the concept of private enterprise and thinks all the oil underlies federal land? The State of Colorado has a web site that lists all the well permits, perhaps the congressman should learn how to use it. 

Additionally, according the the CIA World Factbook, current to January 1, 2011. In the United States, the number of wells in operation has quadrupled in the last three years, domestic oil production is at an all time high of over 9 million barrels per day. Representative Coffman has also shown a tremendous ignorance of how the oil industry works. Just as “You can lead a horse to water, but you can’t make him drink,” you can lease as much land as you like to the oil companies, but they won’t drill until the price makes it worth the risk. Remember, U.S. based “energy” companies like a high oil price too.

We are already tapping our abundant domestic resources at an unprecedented rate, Coffman’s solution is a a non sequitur. We will attribute his comments to political rhetoric and the $164,800 that Open Secrets.org says was contributed to his campaign fund by oil and gas interests. The current price climb is in part (20-30%) attributable to speculator’s activity in the face of uncertainty in Iran. See “How Wall Street Is Raising the Price of Gas.”  Why are the Republicans not making a big cry about that. I think we know the answer to that.

(LONE TREE, CO) -  U.S. Rep. Mike Coffman, R-Aurora, member of the House Natural Resources Committee, issued the following statement regarding President Barack Obama’s energy speech today in Florida:

“President Obama said there is no ‘silver bullet’ to rising gas prices, but I can think of one: tapping our abundant domestic natural resources. Our total onshore acreage leased on public land is the lowest in decades — in Colorado we went from 363 oil and gas leases five years ago to 11 today.”

From the Northern Colorado Business Report on one of many companies operation in Weld County

Whiting reports record production, more Niobrara Wells

 Whiting Petroleum Corp., an oil and gas producer active in Weld County, said its fourth-quarter production of 6.5 million barrels of oil equivalent set a company record.

Whiting’s fourth-quarter production represents a daily average production rate of nearly 71,000 barrels of oil equivalent, also a company record, according to a statement issued by the Denver-based company Thursday. Whiting maintained an average daily rate of almost 68,000 barrels of oil equivalent during the fourth quarter of 2010.

Whiting said it plans to drill eight wells in the Niobrara formation this year.

Controlling more than 73,000 net acres in the area, Whiting recently completed its first Niobrara well, which maintains an initial production rate of 718 barrels of oil equivalent. Whiting plans to operate one rig in the area this year. … Read More

From Chron.com

U.S. oil gusher blows out projections

By Simone Sebastian

The United States’ rapidly declining crude oil supply has made a stunning about-face, shredding federal oil projections and putting energy independence in sight of some analyst forecasts.

After declining to levels not seen since the 1940s, U.S. crude production began rising again in 2009. Drilling rigs have rushed into the nation’s oil fields, suggesting a surge in domestic crude is on the horizon.

The number of rigs in U.S. oil fields has more than quad­rupled in the past three years to 1,272, according to the Baker Hughes rig count. Including those in natural gas fields, the United States now has more rigs at work than the entire rest of the world.

“It’s staggering,” … Read More

 

From the Washington Post

North Dakota Oil Boom Strains Infrastructure, Schools (Video)

Jan. 25 (Bloomberg) — Dave Hynek, a commissioner in Mountrail County, North Dakota, E. Ward Koeser, mayor of Williston, North Dakota, and Viola LaFontaine, superintendent of Williston School District, talk with Bloomberg’s Jennifer Oldham about the impact of North Dakota’s oil boom on their community. North Dakota’s economy outpaced every other state in 2011, with the fastest personal income, employment and home price growth, according to Bloomberg Economic Evaluation of States, or BEES, index data. Yet the boom fueling the nation’s lowest unemployment rate is also pushing rural North Dakota’s housing, electric, water, police and emergency services to the breaking point. (Source: Bloomberg) (Bloomberg)

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