Colorado's flooding shut down hundreds of natural gas and oil wells in the state's main petroleum-producing region, triggering at least two spills, temporarily suspending a multibillion-dollar drilling frenzy and sending inspectors into the field to gauge the extent of pollution.
Besides the possible environmental impact, flood damage to roads, railroads and other infrastructure will affect the region's energy production for months to come. And analysts warn that images of flooded wellheads from the booming Wattenberg field will increase public pressure to impose restrictions on drilling techniques such as fracking.
"There's been massive amounts of growth in the last two years and it's certainly expected to continue," Caitlyn McCrimmon, a senior research associate for Calgary-based energy consultant ITG Investment Research, said of Colorado oil and gas drilling. "The only real impediment to growth in this area would be if this gives enough ammunition to environmentalists to rally support for fracking bans, which they had started working on before this."
Source: AP. Read full article. (link)