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Rocky road ahead: Midstream infrastructure challenges short-term gas and NGL growth in the DJ/Niobrara

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The rig count in the Denver-Julesburg (DJ)/ Niobrara basin has increased by 20% since 2016. Exploration & production CAPEX increased by $400 million in 2018 to $4.2 billion, 105% higher than in 2016. With crude prices hovering at $70/bbl, DJ Basin production is set to grow further but midstream infrastructure pose concerns in the near-term. Gas processing capacity limits are within reach even though gas production growth has been modest relative to oil production. New gas plants are on the horizon but might miss the mark by a couple of months or more, leading to sluggish gas and NGL growth in 2018 and possibly have knock-off effects on 2019. Limited NGL pipeline takeaway might add to short-term woes.

Table of contents

  • Near-term processing constraintsto slow gas growth in 2018
  • Though not as urgent, DJ NGL takeaway also needs to grow
  • What's next for Rockies NGLs?

Tables and charts

This report includes 6 images and tables including:

  • Rockies wet gas growth
  • DJ/Niobrara processing capacity analysis
  • Rockies NGL pipeline system
  • Table 1. Rockies NGL pipeline capacity
  • Overland Pass pipeline
  • Front Range pipeline

What's included

This report contains:

  • Document

    Rocky road ahead: Midstream infrastructure challenges short-term gas and NGL growth in the DJ/Niobrara

    PDF 1.66 MB