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Niobrara crude production trending upwards

The Niobrara shale in Colorado is producing crude at rates even higher than anticipated, according to a report by RBN Energy.

Since January 2012, production from the Niobrara’s top two regions—the Denver Julesburg (DJ) and Powder River Basic (PRB)—is up 260 percent and is expected to double again by the end of 2019. According to the report, the DJ Basin increased its output from 90 million barrels per day (Mb/d) in January 2012 to 235 Mb/d in August 2014. PRB production is up from 50 Mb/d to 130 Mb/d over the same time period.

Related: Niobrara production continues to grow

According to RBN Energy’s outlook for 2019, crude production for both the Denver Julesburg and Powder River Basic basin’s is expected to increase to a staggering 370 Mb/d. The rapid rise in crude production over the past two years is primarily due to advancements in the horizontal drilling process.

Crude takeaway capacity out of the Niobrara regions are currently being slowed due to crude streams travelling through the region from Canada and North Dakota. Takeaway capacity could increase dramatically in the future with the addition of a new pipeline, an idea that has recently surfaced. In 2013, Sunoco Logistics proposed a 70 Mb/d “Niobrara Falls” pipeline that stretches from Plateville to the Gulf Coast, but the proposed project was cancelled due to lack of shipper interest.

Read the full story here.

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