natural resources infrastructure needs colorado oil and gas association denver, co august 9, 2006
TRANSCRIPT
Natural Resources Infrastructure Needs
Colorado Oil and Gas Association
Denver, CO
August 9, 2006
A meaningful piece of prose…
• Western protests Columbia’s proposal to revise its gas quality specifications to include a CO2 specification of 1.25%. This proposed specification is overly restrictive and will balkanize the interstate natural gas pipeline grid by creating an island of disparity in a sea of reasonableness.
B. Jeffries
Infrastructure Needs Extend Beyond Natural Gas
• Crude Oil• Natural Gas Liquids• CO2 supply and infrastructure development for
enhanced oil recovery and carbon sequestration• Electricity• Water• Rail• Processing• Treating• Storage
Natural Gas – the past 5 years
WBIGrasslands80 MMcfd
El PasoCIG
50 MMcfd
William’sNorthwest175 MMcfd
El PasoCheyenne
Plains770 MMcfd
MidAmericanKern
1,052 MMcfd
GasInfrastructure Added in Last
5 years
Total of 2,127 Mcfd added in the past 5 yrs
First Year Natural Gas Production, J onah/Pinedale
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Year
Flow
(M
cfd)
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
Pre-1990 Total (Mcfd)
Updated March 6, 2006 (Data accurate through December 1, 2005)
CBM Production, Upper Powder River Drainage
0
50
100
150
200
250
300
350
400
Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06
Time
(Flo
w)
MM
cfd
Updated J une 17, 2006 (Data accurate through March 1, 2006)
Big George Production is Accelerating
Garfield County, Colorado
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Mcf
d
2000 2001 2002 2003 2004 2005
Colorado Oil and Gas Commission
Rockies Express
A good start but not perfect yet!
1.6 bcfd of supply will have very limited access at Cheyenne!
Need for Chicago Interconnectivity
Will Interconnecting parties build or request taps with sufficient meter capacity?
San Juan supply headed north
Crude Oil In The Rockies
Regional Crude Production is Growing in Some States
020,00040,00060,00080,000
100,000120,000140,000160,000
BOPD
2004 2005
Utah
Colorado
Montana
N Dakota
Wyoming
EIA
395 MBOPD 424 MBOPD
Canadian Association of Petroleum Producers (CAPP)
Conversion/Expansion and Grass Roots Crude Projects are Under
Consideration
Proposed Overland Pass Plus Enterprise Mid-American PL Expansion Keep NGL’s
Flowing
Carbon Dioxide Infrastructure
Wyoming Pipeline Authority
Bryan HasslerExecutive Director
Or contact Colby Drechsel or Carla Hubbard152 North Durbin Street, Suite 230
Casper, Wyoming 82601Office (307) 237-5009Fax (307) 237-5242
www.wyopipeline.com