Denver-Julesburg Basin to grow production by 10 percent
The average production for the Denver-Julesburg (DJ) Basin in 2020 is forecast to hit 1.1 million barrels oil equivalent per day (MMboed) compared to an average of 0.997 MMboed in 2019, according to data and analytics company GlobalData.
Steven Ho, oil and gas analyst at GlobalData, commented, "Oxy and PDC Energy will dominate the majority of the production in the DJ Basin with a combined estimate of 535 MMboed, which approximates to 49 percent of the basin's total production."
In 2020, operators in the DJ Basin will be focusing more on capital restructuring and cost-saving strategies. Oxy reported the company would be able to save 10 percent on its drilling and completion cost from their merger synergy with Anadarko Petroleum. PDC Energy, on the other hand, is leveraging on the operational synergy to reduce operating costs.
For more information, visit www.globaldata.com or call +44 207 936 6400.
Pipeline projects to increase gas delivery to Northeast
Several natural gas pipeline upgrades are planned or under construction in New England, which will increase deliverability into the region during the next several years. According to the EIA, four pipelines are expected to increase compression in their systems by 2023, adding more than 350 million cubic feet per day (MMcf/d) of natural gas pipeline capacity into the region.
The largest of these pipeline upgrade projects is the Iroquois Enhancement by Compression Project, which will increase its capacity by 125 MMcf/d. If approved by FERC, project construction is expected to begin in spring 2023 and be placed in service by November 2023.
Other projects expected to contribute to increased natural gas deliverability in the Northeast are the Portland Xpress Project Phase III, which will add 24 MMcf/d of capacity in 2020; the Westbrook Xpress Project Phase II, which will add 63 MMcf/d of capacity after its expected completion in 2021; the Atlantic Bridge Phase II, which will add 92.7 MMcf/d, expected in 2020 or 2021; and the Station 261 Upgrade Projects, which will add 72 MMcf/d in 2020.
For more information, visit www.eia.gov or call (202) 586-8800.
API study warns of economic costs to families from fracking ban
The API released a new economic analysis outlining the dire economic consequences of a ban on federal leasing and hydraulic fracturing for American families and businesses. More than 95 percent of U.S. natural gas and oil wells are developed using hydraulic fracturing.
The study warns that banning federal leasing and fracking on public and private lands would cost up to 7.5 million U.S. jobs in 2022 alone, lead to a cumulative GDP loss of $7.1 trillion by 2030, slash household incomes by $5,400 annually, increase household energy costs by more than $600 per year and reduce farm incomes by 43 percent due to higher energy costs. If a ban were to be enacted, the U.S. would flip from being a net exporter to importing more than 40 percent of supplies by 2030.
"You can't eliminate the very technology that has enabled the American energy revolution without damaging economic consequences," said Lessly Goudarzi, founder and CEO of OnLocation Inc., which performed the analysis using the EIA's National Energy Modeling System.
For more information, visit www.api.org or call (202) 682-8114.
Meritage commissions new natural gas processing plant
Meritage Midstream Services II LLC has completed commissioning of the Steamboat I processing plant in Converse County, Wyoming. The Steamboat plant more than doubles Meritage's natural gas processing capacity in the Powder River Basin.
With the addition of the Steamboat plant, Meritage's total processing capacity in the basin rises to 380 MMcf/d. The new cryogenic processing plant has a nameplate capacity of 200 MMcf/d.
The company also announced it has entered into a multiyear gathering and processing agreement in the Powder Ridge Basin.
For more information, visit www.meritagemidstream.com or call (303) 551-8150.