NAPE: Rockies gas output just starting to decline

By OGJ editors
HOUSTON, Aug. 26 -- Rocky Mountain operators are just now seeing natural gas production begin to decline, almost a year after they began idling drilling rigs as prices at the wellhead plummeted.

Prices may fall even farther, however, because the volume of gas in underground storage is above the average of the last few years and Colorado figures show production was still growing in this year’s first and second quarters, said Alan Harrison, vice-president, Denver region/Piceance basin, Williams Exploration & Production Co., Tulsa.

The Colorado rig count peaked at 140 in the second half of 2008 and fell to a low of about 40 in recent weeks, Harrison noted at the Summer NAPE E&P Forum in Houston. Williams, lead operator in the Piceance basin in Garfield County, Colo., is running 8 rigs, down from 28.

Various operators have shut-in at least 300-350 wells in each of the Barnett, Piceance, and Fayetteville plays, said Bob Fryklund, vice-president, IHS-Cambridge Energy Research Associates.

Harrison predicted that the rate of decline will steepen fairly rapidly but didn’t estimate a time frame.

In the Piceance valley area, Williams has driven costs down to a low of $1.6 million/8,000-ft well by drilling as many as 22 wells/pad, pumping frac jobs from 2 miles away from the rig, and drilling, completing, and producing gas simultaneously from the same pad, Harrison said.

It also built a 3,200-ft tunnel and a road with drillsites along switchbacks to access 60 otherwise undrillable locations in the highlands part of the basin.

Related Articles

Baker Hughes: US drilling rig count drops to 1,803

03/21/2014 After consecutive weeks of significant gains, the US drilling rig count lost 6 units to 1,803 rigs working during the week ended Mar. 21, Baker Hug...

Cenovus gets AER approval for Grand Rapids oil sands project

03/21/2014 Cenovus Energy Inc. reported that it has received approval from the Alberta Energy Regulator (AER) for its wholly owned Grand Rapids thermal oil sa...

Shell lets contracts for Majnoon development

03/18/2014 Shell Iraq Petroleum Development BV has let engineering and procurement services contracts to Foster Wheeler Kentz Energy Services DMCC, Dubai, for...

Ivanhoe halts Tamarack oil sands project citing lack of regulatory ‘clarity’

03/18/2014 Ivanhoe Energy Inc. has suspended activity on its Tamarack oil sands project pending approval for its thermal oil sands application from the govern...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected