The Niobrara shale formation is located in northeastern Colorado and adjacent parts of Nebraska, Kansas, and Wyoming. Niobrara is part of the larger Denver-Julesburg basin where oil and gas have been discovered. Oil exploration is picking up as numerous oil companies are leasing thousands of acres.
It’s not Like Williston, North Dakota Yet
The employment boom in Williston, ND has been well-publicized. The Bakken field in North Dakota has been revived in recent years and small towns in the region have been overwhelmed with job-seekers. It’s not like that in the Niobrara field yet, although increasing exploration has created a need for many jobs related to oil production. Over 50 oil development companies, including Anadarko Petroleum, Marathon, and Noble, are involved.
The possibility of increasing exploration and oil production has created lots of excitement in Wyoming near the edge of the formation where some wells are producing limited amounts of crude. Wells in Wyoming have produced only 700 barrels daily.
There are Positive Signs for Oil and Gas
PDC Energy reported a significant find after drilling to a depth of 4,100 feet in 11 days. The well was rated at a maximum of 625 barrels of oil and gas equivalent per day — Boepd — with a 30 day average of 310 Boepd. Horizontal drilling and fracking methods were used. These methods were largely responsible for increasing production in the Bakken field.
Pacific Energy Development has commented on the successful exploration of the Niobrara formation with enthusiasm and announced in 2011, “… we believe (Niobrara) to be the next major resource play in the U.S.”
Anadarko Petroleum Corporation has invested heavily in the region and has 11 wells producing significant gas and crude oil. Its most successful well to date is yielding 1,100 Boepd and 2.4 million cubic feet of natural gas daily. Anadarko operates 5,200 wells in the surrounding Denver-Julesburg basin which produce 70,000 Boepd. The company estimates a “potential of 500 million to 1.5 billion Boepd.”
Fracking and Horizontal Drilling is Opening New Crude Prospects
Fracking — hydraulic fracturing — had its beginning when someone thought it might help to drop explosives into a dying oil well in the late 1800s. The procedure — “shooting the well” —successfully caused oil to flow again and eventually gained wide practice. Shooting the well is still practiced on a limited basis by some independent well-owners today.
Today hydraulic fracking consists of injecting millions of gallons of water under high pressure into a horizontal well. This opens small fissures and enhances the flow of oil. The process is not without controversy and claims have been made that fracking pollutes underground water and even increases the possibility of earthquakes.
Without fracking, oil-bearing formations like those in the oil shale regions like Niobrara would not be profitable. The debate continues about the consequences of the procedure.
The oil shale regions of the western United States are yielding more oil than was once thought possible. New fracking techniques have recently produced thousands of successful oil and natural gas wells in the Denver-Julesburg basin generally and in the Niobrara specifically. Although the region is not yet booming like the Bakken region, indications are that it will be a significant source of energy.
Sources:
- “Energy Companies Map Niobrara Formation for its Oil Potential,” denverpost.com. (Accessed: January 12, 2012)
- “Willoughby: Colorado Parks and Wildlife Faces Tough Call on Drilling for Oil,” niobraranews.net. (Accessed: January 12, 2012)
Harvey Craft - I am a retired educator with diverse experience. I read anything science, education, and history. I write to share what I learn.
