In mid-April, Colorado’s governor signed a law changing the way the state regulates its oil and natural gas industry. Senate Bill 181, also known as Protect Public Welfare Oil and Gas Operations, amends the Oil and Gas Conservation Act and gives counties and municipalities increased regulatory authority over oil and natural gas development in their jurisdictions.
In 2018, Colorado produced 460,000 barrels per day of crude oil and 5 billion cubic feet per day of natural gas gross withdrawals, accounting for 4% and 5%, respectively, of the national totals. Colorado’s main oil- and natural gas-producing regions are the Denver Basin in northeastern Colorado and the Piceance Basin in western Colorado. The San Juan Basin that stretches across the Colorado-New Mexico border was once a major natural gas-producing area, but output from that area has declined in recent years.