The Powder River Basin| December 2019
The Powder River Basin, known for its coal deposits, is located in Southeast Montana and Northeast Wyoming. The basin is named so because it is drained by the Powder River. Major cities in the area include Gillete and Sheridan, Wyoming and Miles City, Montana. There is a recent resurgence in oil and gas production as a result of horizontal drilling and hydraullic fracturing. This resurgence is occurring mainly in the Wyoming part of the basin, which is historically known as the source of the basin’s oil.
State Drilling Statistics
Active Drilling Rigs in Basin- 19
Total Rigs in Wyoming- 24
Total Rigs in United States- 781
Total U.S. Rigs down 27% YTD
State Top Producers
Top Gas Producer- Carbon Creek
Top Oil Producer- EOG
Financial & Economic Updates
University of Wyoming to launch carbon capture collaboration with Department of Energy
The U.S. Department of Energy plans to partner with the University of Wyoming to accelerate research on carbon capture technology at two of the state’s coal-fired power plants, Gov. Mark Gordon told the Star-Tribune on Tuesday. A consultant and the university will study the economics and technology behind trapping carbon dioxide before it leaks into the atmosphere at the Dave Johnston power plant in Glenrock and the Naughton power plant in Kemmerer. The governor has stood firm in his commitment to leverage Wyoming’s robust coal assets, even as demand for the commodity falls nationwide and utilities have an eye on cheaper renewables and natural gas.
Eon NRG hits oil in maiden Powder River Basin well
Oil and gas junior Eon NRG has hit oil pay in the first well drilled in its Powder River Basin acreage in Wyoming, US. The onshore US-focused explorer and producer drilled the Govt Kaehne #9-29 well in late November, reaching a total depth of 6,460 feet (1,969m) two days ahead of schedule. In an update, the company said log analysis conducted by Schlumberger following completion of the drilling has indicated more than 30ft (9.14m) of gross pay from the well’s primary and secondary target formations. Schlumberger’s calculations resulted in a total of 21ft (6.4m) of net pay in the Govt Kaehne #9-29 well, with 14ft (4.27m) encountered in the primary Dakota sands and a further 7ft (2.13m) in the shallower Muddy sandstone.
Laramie County residents take Occidental Petroleum to federal court
A cluster of land and mineral owners in Laramie County have had enough. Last week, over two dozen dissatisfied owners filed a lawsuit in the U.S. District Court for Wyoming against one of the largest oil companies operating in the Equality State. Plaintiffs in the suit accuse the international firm of squelching competition in oil and gas plays in the county by hoarding thousands of drilling permits. Occidental Petroleum Corp. is an independent oil and gas producer that shook the energy industry when it acquired Anadarko Petroleum this summer for over $38 billion. The ownership transfer shifted over land — initially acquired from Union Pacific Resources in 2000 — to Occidental. The land is replete with minerals thanks to the Niobrara and Codell formation plays. But the minerals have remained largely untouched. And that has irked many of the county’s residents, some of who own both surface and mineral rights for land east of Cheyenne.
Top Gas Producers
(MMscf / Month)
Top Oil Producers
|5||Peak Power Resources||2,885,294|
Wyoming Gas Production
Wyoming Oil Production
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