Colorado Seeing Severe Drop Off in New Well Starts
In 2018 there were 92 new natural gas wells started in Mesa County, but only 5 new wells started in 2019.
The price for natural gas dipped and the new regulatory rules that were put in place that made public safety and health as well as wildlife and the environment more important than developing natural resources.
Garfield County felt the loss as well with 181 new wells started in 2019, compared to the 275 wells started in 2018.
This year isn't looking any better. Only three wells were started in Garfield County, none in Mesa County at this time. One of the main reasons for the slow down this year is natural gas prices are the lowest they have been in decades. Add in the warmer winter and the underground surplus that is going unused and you begin to understand why.
While the prospects for new wells aren't good for Mesa County, it's not so great for anywhere else in the state, either. Drilling permits, which are good for two years have been issued at their lowest number since the new millennium began. For Garfield County, there have been 149 permits issued, down from 2018 when around 700 were issued.
No permits were given in Mesa County.
The economic impact is being and will continue to be felt across the state as production falls and state income falls as well.