GRAND JUNCTION — The largest natural gas developer in Colorado has instituted a fracking freeze in the Piceance Basin of Western Colorado in response to dropping prices for natural gas and oil.
WPX Energy announced in a blog post this week that it will “pause” the completion process for about 20 wells that have been drilled in the Piceance Basin. That means the wells will sit idle for the time being and won’t undergo the hydraulic fracturing needed to release gas from underground formations.
“We are looking at ways to save on costs,” said WPX spokesman Jeff Kirtland.
WPX employs 380 people in Colorado; the company hasn’t announced any layoffs at this time. The stop to fracking is expected to have more of an employment effect on contractors and service companies that are involved in that portion of the well development process.
Halliburton and other large oilfield service providers, Schlumberger NV and Baker Hughes, provide those fracking-related services. Those companies announced this week that they are laying off thousands of workers, but the companies have not specified where those layoffs will take place.
Kirtland said WPX is trying to negotiate lower prices with the service providers for well completion, and, if successful, that could restart some fracking.
In the meantime, WPX is continuing to drill new wells in the Piceance, where the company has more than 4,400 wells. The company has eight drill rigs operating in Garfield and Rio Blanco counties — down one from 2014.
The second-largest producer in Colorado, Encana Corp, put a halt to drilling in the Piceance last year. Kirtland said WPX is still formulating its company strategy for 2015. The company has an investor telephone meeting Feb. 26, and the plans for the coming year could be announced then.
“Our overall 2015 plans are still progressing. We’re working on the details, such as considering how many rigs to run, etc.,” the WPX blog post stated.
Nancy Lofholm: 970-256-1957, nlofholm@denverpost.com or twitter.com/nlofholm
