Who Will Lead Colorado’s Energy Future?

As ColoradoBiz prepared its fifth Energy Report, we identified more than 100 story ideas for consideration. From renewables to hydrogen to the electric grid to battery storage and critical minerals, we were again reminded that we’ll never run out of business stories to tell.

And while this report may merely scratch the surface when it comes to protecting our environment and wildlife, the state’s role within America’s energy security plan, the face of energy poverty, legal, regulatory and political challenges facing our state, and its competitiveness compared to other states, we felt the following articles set the scene for energy today and key topics that will matter most in the next decade.

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The world energy market is complex, to put it plainly. Many don’t know that the robust history of oil in Colorado began in Boulder in 1901. Yes, Boulder, the most progressive and environmentally conscious city and county in the state, initiated our dependence on fossil fuels. Yet, a look at modern-day Boulder proves without a doubt that hydrocarbons like oil and gas can be extracted and the land safely returned to its pristine state, sometimes even better than it was before.

So, who are Colorado’s energy leaders who have found a way to protect the environment we love while producing the energy we need?

The people behind it may be just as complex as the market itself. In short, there are two classifications of oil and gas producers: independents, who usually operate only in the U.S. or a single state like Colorado; and major oil companies, typically with hundreds of thousands of employees and operations across the world. Examples of major U.S. oil companies are Chevron and ExxonMobil.

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Both independents and majors are positively shaping our energy future. Major oil companies have earned their right to the pick of the litter not just across the U.S., but across the globe, and their investments go well beyond just oil and gas. Think of them as the Apple or Google of energy.

In recent years there has been a slew of multi-billion-dollar acquisitions and consolidations within the oil industry. In 2019, Occidental Petroleum Corp. acquired Anadarko Petroleum Corp. and its Colorado assets for $57 billion. The following year, Chevron announced it was acquiring Denver-based Noble Energy for $5 billion. In May of this year, Chevron also acquired Denver-based PDC Energy for $7.6 Billion. Last month, ExxonMobil announced it was acquiring Pioneer Natural Resources for $59.5 billion. Two weeks later, Chevron announced it is acquiring Hess Corp. for $53 billion. Some of these deals mark three of the five largest oil and gas acquisitions in history.

Companies like Chevron and ExxonMobil, or Apple or Google for that matter, don’t make multi-billion-dollar investments without a firm grasp of the future.

Clearly, oil and gas will continue to fortify, if not lead, our energy mix for several decades to come. But make no mistake about it, there is an energy transition underfoot – literally. Oil and gas are unlikely to be the predominant energy sources beyond 2050 like they are today. However, leaders in this industry, and companies like Occidental and Chevron, are infinitely better positioned to solve problems associated with climate change. After all, who’s more likely to cure cancer, a scientist in the laboratory testing real-life samples, or a professor waxing philosophical in the classroom? My money’s on the oil engineers. No one knows carbon like they do.

Jon Haubert is the publisher of ColoradoBiz magazine. Email him at [email protected].