Energy sector boom sets production records

The Associated Press

Coal, natural gas, oil and minerals production in Colorado increased 49 percent last year and is expected to grow again this year.

The energy sector set a record value in 2003 of $6.05 billion, with two-thirds attributed to natural gas, according to a recent Colorado Geological Survey report. Preliminary midyear reports indicated the sector could do even better this year.

The boom has been credited to higher prices for oil, natural gas and gold, which boosted production to record levels for natural gas and coal, said James Cappa, chief of the survey’s mineral resources section. Natural gas production totaled $4.01 billion in 2003, which was about two-thirds of the total value, the survey reported.

The Colorado Oil and Gas Conservation Commission said 2.5 billion cubic feet of gas per day was produced last year, an increase of 6 percent from 2002. Production could hit 3 billion cubic feet per day this year, the commission forecast.

About 6,000 cubic feet of gas is the equivalent of one barrel of oil.

Colorado ranked seventh in the nation in coal production, which hit a record 35.9 million tons valued at $682 million.

Oil production was valued at $599 million in 2003, and is forecast to be about 21.9 million barrels in 2004, which would be up 2.8 percent, the state commission estimated. Minerals such as gold, gypsum and molybdenum totaled $702 million in 2003, up 11.6 percent from 2002. Colorado’s only active gold mine, which is owned by the Cripple Creek & Victor Gold Mining Co. in Teller County, produced 281,588 troy ounces in 2003, and plans to produce 348,000 ounces this year.

Also, Colorado produced 22.2 million pounds of molybdenum and 590,000 tons of gypsum in 2003.