The Powder River Basin | May 2023
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 Gillette and Sheridan, Wyoming, and Miles City, Montana. There is a recent resurgence in oil and gas production as a result of horizontal drilling and hydraulic fracturing. This resurgence is occurring mainly in the Wyoming part of the basin, historically known as the source of the basin’s oil.
State Drilling Statistics
Total Rigs in Wyoming- 17 (+2)
Total Rigs in the United States- 682 (-32)
Total U.S. Rigs 10.4% YTD
State Permitting Data
Permits Approved – 39
Powder River Top Producer
Top Producer – EOG
In an interview, Anschutz CEO Joe DeDominic discussed the bright future that the company sees in the Powder River. He mentions the progression toward three-mile Niobrara wells in the basin–an innovation being piloted by Devon. He discusses the confidence he has in Anschutz’s large inventory in the basin, which is largely centered on Campbell County. He mentions also some Uinta and Piceance testing that is diverting one of Anschutz’s four Powder River rigs for a few months in the upcoming year on the drilling calendar.
A new vision for the Biden Administration’s policy towards oil and gas was the focus of a May 2 teleconference between the Natural Resources Defence Council, Earthjustice, the Sierra Club, and the National Parks Conservation Association. The considerations of this conference are all overwhelmingly anti-oil and gas. One of the groups estimated that the Inflation Reduction Act will reduce emissions 40% and that the nation ought to strive to cut oil and gas production on federal lands by 50% by 2030 in order to help get the nation to a 50% emissions reduction in that timeframe.
1876 Resources, a subsidiary of Deutsche Rohstoff USA Inc. and formerly known as Cub Creek Energy, has agreed to purchase an existing gas gathering system in the Powder River Basin. The transaction includes 36.8 miles of pipeline, surface tanks, and other equipment. The gathering system connects 1876 Resources pads and has a capacity of 5,000 mcf/d with options to expand the capacity. With this step towards vertical integration, the firm expects to reduce gathering fee expenses by ~$2 million annually.
Most Permit Approvals by Operator
|3||Navigation Powder River||4|
|5||1876 Resources LLC||2|
Top Producers – Oil
|Rank||Company||Monthly Oil Production (MBO)|
|5||Crescent Energy Company||445|
Top Producers – Gas
|Rank||Company||Monthly Gas Production (MMCF)|
|3||Carbon Creek Energy||5,005|
Wyoming Oil Production
Wyoming Gas Production
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