Volumes rise on Crestwood’s Bakken gathering system

Crestwood Equity Partners LP’s Bakken shale Arrow gathering system ran at higher-than-expected volumes in second-quarter 2020.

OGJ editors

July 10, 2020

2 min read

Crestwood Equity Partners LP’s Bakken shale Arrow gathering system ran at higher-than-expected volumes in second-quarter 2020. Arrow averaged second-quarter 2020 crude oil volumes of 87,000 b/sd, natural gas volumes of 90 MMcfd, water volumes of 73,000 b/sd, and natural gas processing volumes of 87 MMcfd.

These average quarterly volumes exceeded both initial forecasts by Arrow producer customers and Crestwood’s revised guidance issued May 2020, which assumed 50% of volumes on the system would be shut-in through July 2020. Instead about 90% of estimated available Arrow production is flowing and, based on producer plans for second-half 2020, Crestwood expects the Arrow system to return to 100% flow rates then. The company also expects its larger producer customers to bring back completion crews starting third-quarter 2020. Crestwood Arrow-system customers include WPX Energy Inc., XTO Energy Inc., Enerplus Corp., RimRock Oil & Gas LP, Bruin E&P Partners LLC, PetroShale Inc., and QEP Resources Inc.

Following the announcement of possible curtailments on Energy Transfer Partners’ Dakota Access (DAPL) crude pipeline, Crestwood says it has engaged with Arrow’s producer customers to ensure downstream market access for 100% of available crude (OGJ Online, July 6, 2020). Arrow connects to Kinder Morgan Inc.’s Hiland gathering system and Tesoro Logistics LP’s pipelines in addition to DAPL.

Crestwood can also transport Arrow-system crude by pipeline or truck to its crude-oil loading terminal (COLT) on the BNSF rail line in Epping, ND. COLT has multiple pipeline connections, storage capacity of 1.2-million bbl, and rail loading capacity of 160,000 b/d.

“In the event of a shutdown of the DAPL pipeline in August or at some future point, Bakken basis differentials will be negatively affected in the short term until production volumes are reallocated to other pipelines and rail facilities,” said Robert G. Phillips, chairman, president, and chief executive officer of Crestwood’s general partner.