Location: RM 271
COMMITTEE ON JOINT SENATE AGRICULTURE HOUSE TRANSPORTATION
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07:01 AM -- Economics of Oil and Gas
Representative Mitsch Bush called the meeting to order and announced that rollcall would not be taken because attendance at today's meeting is voluntary.
Tracee Bently, Executive Director, Colorado Petroleum Council, welcomed the committee and identified other members of the council in attendance.
Erica Bowman, Chief Economist, American Petroleum Institute (APAI), discussed recent advances in drilling and production technologies and how these developments have affected production and the price of natural gas and oil (Attachment A). She identified factors driving the oil market in Colorado and internationally. She explained how production in Saudi Arabia, Iran, Iraq, and other countries have affected the price of oil and she discussed price forecasts and how they affect oil and gas production. She also discussed the ability of domestic oil and gas producers to operate during a period of depressed energy prices.
Ms Bowman discussed oil and gas production in Colorado during the period of 2002 - 2016 and identified factors affecting production in the state. She explained that Colorado crude oil production experienced one of the fastest growth rates in the U.S. between 2013 and 2015, but declined in 2016. She also discussed oil and gas inventories and how they affect price and production, and identified the primary uses of natural gas for electric generation, residential heating, industry and other purposes.
Ms Bowman discussed natural gas exports to Mexico and other countries and explained how the price of natural gas affects electric generation and identified the economic advantages of this fuel source.
Ms. Bowman responded to questions from the committee about OPEC production goals; factors affecting oil and gas production in Colorado; the number of drilling rigs in Colorado drilling permits on federal lands; the competitiveness of coal compared to natural gas for electric generation; the potential effect of the Trump administration on energy producers in Colorado; and other issues.
Ms. Bowman responded to questions from the committee about trends in the electrification of transportation in the U.S. and its affect on the price of oil and gas. She also discussed natural gas production costs in the U.S. and how it affects LNG exports.
Ms. Bently introduced other members API staff in attendance.
The committee adjourned.