Sandy Fielden, RBN Energy , October 2, 2014
Crude production from the Denver Julesburg (DJ) and Powder River Basin (PRB) plays in the Niobrara shale in Colorado and Wyoming is up 260% to 361 Mb/d since January 2012 and is expected to double again by the end of 2019. Takeaway capacity is expanding but is complicated by crude streams travelling through the region from Canada and North Dakota. Rising condensate production also presents a challenge to midstream companies. New pipeline proposals to expand takeaway from the DJ by as much as 500 Mb/d have recently surfaced – suggesting that local producers are looking to secure capacity. Today we look at recent and planned expansions to Niobrara takeaway capacity.
We first described growing producer interest in the Niobrara shale in April of 2013 (see Bananarama in the Rockies). As we use the term here, the Niobrara is a generic region that extends across northeast Colorado, northwest Kansas, southwest Nebraska and southeast Wyoming and encompasses several plays in the region including other hydrocarbon bearing shales such as the Codell. To date, most of the oil and gas development in the region has focused on two areas, the Denver-Julesburg (DJ) Basin and the Powder River Basin (PRB). The DJ basin hot spot is the Wattenberg field in Weld County in northeast CO. PRB drilling activity is concentrated in Campbell and Converse counties WY. DJ Basin drilling in Ward County includes both a wet gas zone (where production is primarily rich gas with high liquids content) and an oil zone. Continue reading “Niobrara Crude Production Takes Off” »