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Colorado   Colorado Profile

State Profile and Energy Estimates

Profile AnalysisPrint State Energy Profile
(overview, data, & analysis)



Last Updated: July 17, 2025

Overview

Colorado ranks among the top 10 states in total energy production.

Colorado, a Rocky Mountain state, has 58 mountain peaks higher than 14,000 feet, the most of any state.1,2 At the southwestern-most point of Colorado is the Four Corners Monument, where four states, Colorado, Utah, Arizona, and New Mexico, meet—the only place in the nation where four states intersect at a single point.3 Colorado has abundant fossil fuel reserves and renewable energy resources.4 Its diverse geography includes the headwaters of major rivers; significant wind and solar energy resources; and substantial deposits of crude oil, natural gas, and coal.5,6,7,8 Colorado ranks among the top 10 states in total energy production.9 Colorado is the eighth largest state in terms of land area, at about 104,000 square miles.10 The vast eastern plains of Colorado, beginning at elevations of over 3,500 feet along the Kansas border, gradually rise westward toward the Rocky Mountains that run through the center of the state, peaking at 14,400 feet.11,12,13 About 7 in 10 Colorado residents live in metropolitan areas along the eastern edge of the Rocky Mountains, leaving much of the state's mountainous areas and plains sparsely populated.14,15

Weather fronts can move in from the west across the mountains or from the east across the plains. Temperatures vary widely, depending on elevation and season, and have reached records of 114°F on the plains and 60°F below zero in the mountains.16 Colorado is a winter sports destination, and about 1 in 25 houses is occupied only seasonally.17,18,19

Colorado has a diverse economy. Despite its energy intensive mining and oil and gas industries, the amount of energy used to produce one dollar of Colorado's GDP is less than in about three-fourths of the states.20 The largest contributors to the state's GDP include finance, insurance, and real estate; professional and business services; and government.21 Several major military installations are based in Colorado, including the United States Air Force Academy, U.S. Northern Command, and Fort Carson.22 For the fiscal year 2023, the federal defense sector contributed $13 billion to the state's economy.23 Partly as a result, Colorado's per capita energy consumption is lower than nearly two-thirds of the states.24 The transportation sector is Colorado's leading energy consumer, accounting for about 33% of the state's total energy use, followed by the industrial sector at 26%, the residential sector at 23%, and the commercial sector at 18%.25

Petroleum

Colorado is the fourth-largest oil-producing state and accounts for about 4% of U.S. total crude oil output.26 The state has 2% of the nation's economically recoverable crude oil reserves.27 In 2024, Colorado produced more than five times as much crude oil than a decade earlier, primarily from the increased use of horizontal drilling and hydraulic fracturing technologies.28,29 The state's crude oil production in 2024 was the highest in five years.30

About four-fifths of Colorado’s crude oil production comes from Weld County.

Most of Colorado's crude oil production comes from the Niobrara Shale formation located in the Denver-Julesburg Basin in northeastern Colorado, where crude oil output in one county, Weld, is the source of 8 out of every 10 barrels of crude oil produced in the state.31,32 The Wattenberg field, much of which is in Weld County, in the northern part of the state, is among the top 10 U.S. oil and natural gas fields based on proved reserves.33,34 The Piceance Basin in the western mountain region is the other primary crude oil-producing area in Colorado.35,36

Northwestern Colorado overlays part of the Green River oil shale, a kerogen-rich formation.37,38 Kerogen is an organic material found in some sedimentary rocks that can be heated to extract crude oil.39 Although pilot oil shale projects were attempted in the area, obtaining crude oil from kerogen is not currently economically viable.40,41

Colorado has two petroleum refineries in the Denver area, with a combined capacity to process 103,000 barrels of crude oil per calendar day into motor gasoline, diesel fuel, asphalt, jet fuel, and other petroleum products.42,43 Colorado is home to several oil pipelines, which transport crude oil from the Denver-Julesburg Basin to refineries and storage hubs within and outside the state.44 Demand for refined petroleum products in Colorado is almost three times more than the state's refining capacity.45,46 Several petroleum product pipelines, primarily from Wyoming, Texas, and Kansas, help supply the Colorado market, and refined products are also brought in by rail and truck.47,48,49,50 A 230-mile refined petroleum products pipeline is being built from Scott City, Kansas, to Denver International Airport, which is scheduled to be completed in mid-2026.51

In May 2024, Colorado's governor signed legislation into law that enacted a new fee on oil and gas production and changes the state's pollution laws, which became effective on July 1, 2025. The legislation imposes a sliding-scale fee, equivalent to a surcharge of about 0.5% on each barrel of oil produced. This fee will be used to fund public transit and efforts by Colorado Parks and Wildlife to acquire and conserve wildlife habitat to offset the impacts of oil and gas development.52,53 The legislation gives the state's Energy and Carbon Management Commission more power to enforce ozone regulations and provides funding to present orphaned wells, which can leak methane. It would also codify a mandate for oil and gas producers to reduce emissions of ozone precursors.54,55

The transportation sector accounts for more than four-fifths of all petroleum consumed in Colorado, mostly as motor gasoline and diesel fuel, followed by the industrial sector with about one-tenth. The residential and commercial sectors accounted for nearly all the rest, with a small amount of petroleum used for power generation by the electric power sector.56,57 The Denver-Boulder and Fort Collins metropolitan areas use motor gasoline oxygenated with ethanol to limit smog formation.58,59 The rest of the state is allowed to use conventional motor gasoline.60 Colorado has three fuel ethanol plants with a combined production capacity of 166 million gallons per year. Those facilities use corn as their feedstock.61,62

Natural gas

Colorado has the eighth-largest natural gas reserves in the United States.

Colorado has the eighth-largest natural gas reserves of any state, accounting for about 3% of the U.S. total.63 It is also the eighth-largest natural gas-producing state in the nation.64 Colorado's marketed natural gas output increased in 2024 for the first time in four years, but was still lower than the peak production of almost 2 million cubic feet in 2020.65 Colorado is home to all or part of 12 of the nation's 100 largest natural gas fields.66

Colorado's largest natural gas-producing regions are in the Denver-Julesburg Basin in the northeast and in the Piceance Basin in the west.67 As natural gas prices fluctuate, some drilling activity moved from the Piceance, which produces mainly dry natural gas, to the Denver-Julesburg Basin, which produces higher-value crude oil and natural gas liquids. The San Juan Basin that stretches across the Colorado-New Mexico border is also a major natural gas-producing area, though output there has declined in recent years.68,69,70,71

Colorado is the top producer of coalbed methane gas, which is a type of natural gas extracted from coal seams.72,73 Production of coalbed methane gas grew rapidly in the 1990s and usually accounted for about one-third of Colorado's total marketed natural gas production during that period. Production of coalbed methane declined about 50% from 2010 to 2023. However, Colorado remains the top coalbed methane-producing state, accounting for about one-third of U.S. production in 2023.74,75,76 The San Juan and Raton Basins, located in the southern part of the state in the counties of La Plata and Las Animas, produce nearly all of the state's coalbed methane.77,78,79

In 2024, the electric power sector overtook the residential sector as Colorado's largest consumer of natural gas, accounting for 33% of the state's natural gas demand.80 Natural gas consumption for electricity generation has increased for the past three years, as natural gas prices declined.81,82 The residential sector, where about 7 out of 10 Colorado households use natural gas as their primary home heating source, accounts for about 31% of the state's natural gas use.83,84 The industrial sector accounts for 22% of the state's natural gas use, followed by the commercial sector at about 14%. The state uses only about one-fourth of the natural gas it produces.85,86

Several major interstate pipelines cross Colorado and ship natural gas to 10 U.S. states, with the largest volumes going to Wyoming.87,88 The state has two natural gas trading hubs at interstate pipeline interconnections.89 The Cheyenne hub, near the Colorado-Wyoming border, is located in the Denver-Julesburg Basin, and the White River hub is located in the Piceance Basin.90,91 Colorado has 10 underground natural gas storage fields with about 141 billion cubic feet of combined storage capacity, equal to about 2% of the U.S. total.92,93 The state's storage capacity increased between 2008 and 2018, but has remained steady since then.94

Coal

Colorado ranks eighth among the states in estimated recoverable coal reserves.95,96 The state produces coal from both underground and surface mines.97 Currently, mining is focused in the Green River, Piceance, and San Juan Basins.98,99 Colorado's coal is used almost entirely for electricity generation, but the market for the state's coal has decreased and several Colorado mines have closed as the share of U.S. electricity generated by coal-fired power plants continues to decline.100,101,102,103 Coal production in Colorado saw a slight increase in 2021 and 2022, but declined in 2023 and remained relatively flat in 2024.104,105 About two-fifths of the coal mined in Colorado is used for power generation within the state. Coal mined in Colorado is also transported for electric power generation or used at industrial plants in 17 other states, and a small amount is exported to overseas markets.106,107,108

Electricity

Colorado’s electricity generation from renewable energy sources has almost tripled between 2014 and 2024.

In 2024, natural gas-fired power plants and wind energy each accounted for 29% of Colorado's total electricity net generation, with both surpassing coal-fired generation for the first time. Coal-fired power plants accounted for 27% of state generation in 2024, down from 60% in 2014.109 Colorado's power plant operators plan to continue replacing coal-fired capacity with generating capacity fueled by natural gas and renewable energy sources due to economic and regulatory considerations.110,111,112 The 138-megawatt natural gas-fired Mountain Peak power plant is scheduled to come online by mid-2025.113 By 2029, about 2,500 megawatts of coal-fired generating capacity in Colorado is scheduled to retire.114 Most of the rest of Colorado's in-state electricity generation was provided by solar energy and hydroelectric power.115

Colorado does not have any nuclear power plants.116 In April 2025, Colorado's Governor signed a bill into law recognizing nuclear power as part of the state's clean energy portfolio.117 Additionally, part of the Uravan Mineral Belt, which has deposits of uranium, as well as vanadium, a critical mineral, and radium, is in the southwestern part of Colorado.118,119 No uranium has been mined in the state since 2005, but there are 29 active lease tracts and uranium mining could begin again, with one proposed project in Coyote Basin in northwestern Colorado.120,121,122,123

Colorado uses less electricity per capita than three-fourths of the states.124 The commercial and residential sectors are the largest consumers of electricity in Colorado. They each account for about 37% of the state's total power use, followed by the industrial sector at 26%.125 About one in four Colorado households use electricity as the main home heating source.126 For the last three years, in-state generation exceeded total electricity consumption, but the state can receive electricity from Wyoming, Nebraska, Kansas, New Mexico, and Utah over the high voltage interstate transmission lines of the regional grid.127,128 June 2023 marked the groundbreaking for the TransWest Express project, a new 732-mile transmission line that will extend from south-central Wyoming through northwestern Colorado and central Utah, ending in southern Nevada. Once completed, the transmission line will provide 3,000 megawatts of new transmission capacity. The project is scheduled to be completed in 2029.129,130

In May 2025, Colorado had 2,433 public electric vehicle (EV) charging locations, the seventh highest total among the states.131 Colorado ranks eighth in the nation with almost 120,000 registered EVs.132

Renewable energy

In 2024, renewable sources of energy accounted for 43% of Colorado's total in-state electricity net generation, a record high. Wind power accounted for the largest share of Colorado's renewable electricity generation at 67%, followed by the combined 27% for utility-scale (1-megawatt or larger) photovoltaic and small-scale (less than 1 megawatt), customer-sited solar. Hydroelectric power accounted for 6% and biomass was less than 1%.133

Colorado ranks seventh nationwide in installed wind power capacity.

Colorado has significant wind energy resources on its eastern plains and mountain crests and ranks seventh nationwide in installed wind power generating capacity.134,135 The state's use of wind power more than doubled between 2014 and 2024.136 The newest wind power project is the Bronco Plains Energy Center, which added 200 megawatts of capacity, from 72 turbines, and came online in December 2023.137,138

Colorado has substantial solar resources, especially in the south near the New Mexico border.139 At the end of 2024, Colorado ranked 14th among the states in utility-scale solar power-generating capacity with 2,341 megawatts installed.140 An additional 817 megawatts of solar power capacity is scheduled to be operating by the end of 2026.141 Small-scale customer-sited solar panel systems increased by almost 20% in 2024 and accounted for almost one-third of the state's total solar generation in 2024.142 Colorado offers net metering and customers can receive incentives and credits from their municipal utility or electric cooperative for installing solar panels.143,144,145

Colorado has 65 mostly small hydroelectric generators, ranging in size from 500 kilowatts to 87 megawatts, with a total installed capacity of 693 megawatts.146 The state also has three pumped-storage hydroelectric plants, with a total generating capacity of about 580 megawatts.147 Pumped-storage hydroelectric plants generate electricity during peak demand periods, when power prices are higher, using water pumped into an elevated storage reservoir during off-peak periods and then releasing it to flow back to a lower reservoir through turbine generators when additional power is needed.148,149 Two new pumped-storage hydroelectric plants are being proposed, one in south-central Colorado and the other in the northwest.150,151

Colorado's only utility-scale woody biomass-fueled generating plant came online in 2013 and burns waste gathered from surrounding forests.152,153 The state also provides tax breaks to promote biomass generation from anaerobic digestion, which collects and burns the biogas produced from livestock manure or food waste to generate electricity.154,155,156,157

Colorado has a number of hot springs, and studies indicate that the state has significant geothermal energy potential.158 Colorado's Governor in 2024 approved $7.7 million in grant money to support 35 private geothermal developments.159,160 This effort follows two bills signed into law in 2022 to foster geothermal technologies.161 The state's geothermal resources are mainly used for heating or cooling homes, businesses, recreational pools, and Colorado's state capitol building in Denver.162,163 Consumers can receive tax credits for installing geothermal heat pumps.164 Currently, Colorado has no utility-scale projects that generate electricity with geothermal energy.165

In 2004, Colorado became the first state with a voter-approved renewable portfolio standard (RPS). The state's legislature amended the RPS several times, and the RPS now requires 30% of electricity sold by investor-owned utilities to be generated from renewable energy sources, with 3% from small-scale distributed generation. Separate requirements apply to municipal and cooperative electricity suppliers, depending on their size.166 The state's largest investor-owned utilities have met this 30% requirement and continue to add renewable energy and storage to their electricity generation portfolios.167,168,169 In January 2021, Colorado released its Greenhouse Gas Pollution Reduction Roadmap detailing how the state plans to reduce its greenhouse gas emissions by 26% from 2005 levels by 2025, 50% by 2030, and 100% by 2050.170

Endnotes

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55 Colorado General Assembly, SB24-229 Ozone Mitigation Measures, effective May 16, 2024.
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57 U.S. EIA, State Energy Data System, Table C4, Total End-use Sector Energy Consumption Estimates, 2023.
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65 U.S. EIA, Colorado Natural Gas Marketed Production (Million Cubic Feet), 1967-2024.
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81 U.S. EIA, Colorado Natural Gas Deliveries to Electric Power Consumers, 1997-2024.
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