Published on : Jan 06, 2015
President of Colorrado Petroleum Association, Stan Dempsey stated that companies are mulling over investment options as Colorado energy manufacturers are looking at a new year of low oil prices. Mr. Dempsey further added that companies are evaluating their projects in the pipeline to the ones in other parts of the world to gauge whether investment in Colorado is worthy enough. For now companies want to understand that which projects and which geographies will fetch better return on investment.
For instance, Encana Coporation which has its operations in Colorado will focus on Texas and Canadian oil fields. On the other hand, PDC Energy will double down in Colorado and cut back someplace else.
According to Doug Flanders, director of policy and external affairs for Colorado Oil and Gas Association, the low oil prices will impact each company in a unique manner which will largely be influenced by their operations. However, the consumers both, the ones in Colorado and nationally are experiencing the benefit of fracking in low gas prices which is saving them money at the pump and brining down overall cost of energy.
The other hurdle faced by energy companies in Colorado is penalties charged to the energy companies who tamper regulations. Presently, many conservation groups are working towards snatching Colorado Oil and Gas Conservation Commission’s ability to forgive fines. According to conservation groups fines are a way of ensuring that companies do not violate any rules or regulations. However, Dempsey stated most of the companies in the energy industry do work with a motto of “keep Colorado beautiful”.