The Mountain West’s top oil and gas-producing states had an average of 6 spills per day in 2020
Data shows decline in number of spills, but skyrocketing methane emissions in New Mexico
Across the West, spills from oil and gas development take a toll on lands, waters, and communities that live nearby. In Colorado, New Mexico, and Wyoming — the Mountain West’s top oil and gas-producing states — companies report thousands of spills each year, which release toxic materials such as crude oil and produced water. For the past four years, the Trump administration’s “energy dominance” agenda ramped up drilling across the West while slashing environmental safeguards, and during the administration’s first three years spills in these Western states steadily rose.
Last year, however, spills in each state declined compared to past years. In 2020, the industry was hit hard by decreased demand resulting from the COVID-19 pandemic and an international price war that caused the price per barrel to drop below zero in April. Although overall annual production remained steady, drilling rig counts and well starts did decrease. In addition, companies have racked up significant debt over the past decade, causing bankruptcies as the industry was hit by the effects of the pandemic and price war. The coronavirus pandemic also may have disrupted the observation and reporting of spills.
While federal regulations remained unchanged, Colorado and New Mexico have stepped up their environmental regulations and enforcement for oil and gas drilling within their states. In Colorado, the number of inspections increased 37% compared to 2018. Fines also increased significantly, with companies paying over $25 million in 2020, compared to just $2.8 million in 2019 and $5.2 million in 2018. This spike was largely due to a single fine that is the largest in the state’s history; however, even without that fine the Colorado Oil and Gas Conservation Commission (COGCC) still issued millions of dollars more in fines than previous years. New Mexico’s oil and gas regulatory agency regained the ability to assess fines on oil and gas companies in 2019 a decade without the ability to enforce its regulations, which could have contributed to increased compliance in 2020. In addition, inspections rebounded to over 40,000 site visits in 2020, after a dip in 2019. While there are a variety of factors that may have contributed to the decline in spills last year, it is likely that state-level regulations and enforcement are working to protect land and water in the West.
In 2020, companies in Colorado, Wyoming, and New Mexico reported 2,179 oil and gas-related spills that released more than 109,000 barrels of produced water and 24,000 barrels of crude oil collectively. Overall, oil and gas-related spills were down in all states, and volumes of produced water, oil, and other materials released followed that trend. However, methane emissions in New Mexico skyrocketed to the highest levels reported since tracking began in 2013 with over 1.7 billion cubic feet of methane released, more than double what was released in 2019.
Similar to past years, five companies in each state are responsible for a significant proportion of all spills. This year, over 40 percent of spills in each state were caused by just five operators.
Spills are concentrated in one or two counties in each state, remaining consistent with findings from past years. In Colorado, Weld County had 48 percent of the state’s spills. In New Mexico, Eddy and Lea counties had 88 percent of the spills. In Wyoming, Converse and Campbell counties had 45 percent of the spills.
Read the report to dive into the 2020 oil and gas spills in Colorado, New Mexico, and Wyoming.
Methodology:
Each year, the Center for Western Priorities tracks oil and gas-related spills in Colorado, New Mexico, and Wyoming, assessing what spilled, where spills occur, and what companies are responsible, among other factors. Colorado and New Mexico make spill information public and Wyoming provided the information by request. The Center for Western Priorities obtained 2020 data from each of these states and quantified what materials were spilled and which operators were responsible in order to better inform the public on drilling impacts.
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