Digging in as energy prices remain low, Texas-based Anadarko Petroleum says it's cutting capital investments and its onshore rig count, which in turn means it's pulling back to a single rig in Colorado, in the Denver-Julesburg Basin.
The company is reducing its U.S. onshore rig count by 80 percent to five operated rigs, from an average of 25 in 2015, while focusing on its base production and retaining the flexibility to leverage its inventory of approximately 230 drilled but intentionally uncompleted wells. ... In the DJ Basin, the company expects to operate one rig, compared to seven in 2015.
Company spokeswoman Robin Olsen confirmed that 1,000 employees will lose their jobs in the move -- 17 percent of its workforce, but hasn't detailed Colorado job losses specifically.
“Staff reductions are necessary as we work to navigate a difficult market environment and adjust our workforce to a lower capital program," she said.
Last year, Colorado’s DJ Basin was a favorable place for big operators like Anadarko. The company was somewhat insulated from the turmoil caused by low oil prices in the area because Anadarko owns most of the mineral rights it developed. That means it didn’t have to pay royalties, so its production costs are lower than some other companies.