1 public utilities commission of the state of california march 23, 2004 wyoming wyoming natural gas...
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Public Utilities Commission of the State of California
March 23, 2004
WyomingWyoming Natural Gas Pipeline Authority
Where is Production Growing ………………..
……………And Where is it Not Growing
Wyoming vs Kansas
0
50,000
100,000
150,000
200,000
250,000
Jan-9
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4P
roduction (M
mcf/m
onth
)
0.9 bcfd loss
EIA data
Wyoming vs Oklahoma
0
50,000
100,000
150,000
200,000
250,000
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4P
roduction (M
mcf/m
onth
)
Wyoming
Oklahoma
1.9 bcfd loss
2.3 bcfd gain
EIA Data
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Growth In Production - Wyoming
Wyoming Production From Major Plants and Fields (Sales)
Production is stated in MMCFD and is average daily production for a particular year.
Blacks Echo Lost Powder
Opal Granger Fork Springs Cabin PavillionRiver Basin
1998 545 172 89 303 35 82
1999 582 156 98 279 55 47 156
2000 645 139 127 295 78 50 403
2001 713 148 125 323 84 56 673
2002 839 189 89 346 91 68 848
Oct ’03 Average 1078 255 98 344 121 45 952
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Jonah Field (EnCana Interest Only)Unrestricted Development – If we don’t keep drilling production will decline as illustrated in red below
Jonah - Unrestricted Capital and Production Forecast
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2000 2001 2002 2003 2004 2005 2006 2007
Pro
du
ctio
n W
edg
es (
MM
CF
/D)
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100
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Cap
ital
Co
lum
ns
(MM
$)
2003 = 70 wells/year2004 = 165 wells/year2005-2012 = 200 wells/year
Current Production
Future Development
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Growth In Production – Colorado (Garfield County)
• 1999 154,000 Mcfd• 2000 190,000 Mcfd• 2001 241,000 Mcfd• 2002 315,000 Mcfd• March ’03 365,000 Mcfd• Oct ’03 423,000 Mcfd• Going to? 1 Bcfd +
Major Operators include: EnCana, Williams, Calpine, Mesa, Tom Brown, Exxon/Mobil
Data Source: Colorado Oil and Gas Conservation Commission
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Producer Critical Success Factors
• Access to Federal Lands• Gas Price• Timing of Regulatory Approvals• Gathering System Capacities and Pressures• Transportation Export Capacity• Capital Efficiency• Public Acceptance
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Lack of Access to Federal Lands
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Nymex vs Wyoming Prices - 2002
Nymex vs Wyoming Prices2002
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Price
($/M
MBtu)
CIG 2002
Nymex 2002
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Nymex vs Wyoming Prices - 2003
Nymex vs Wyoming Prices2003
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Pric
e ($
/MM
Btu
)
CIG 2003
Nymex 2003
Kern River Online
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Pipeline Projects In-service or Full Market Support
• Kern River Pipeline Expansion
• Williston Basin Grasslands Pipeline
• Northwest Pipeline Expansion
• El Paso Cheyenne Plains Pipeline
• TransColorado
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Kern Expansion online May ‘03
WBI Grasslands online Nov ‘03
Northwest PL Expansion online Nov ‘03
Proposed El Paso Cheyenne Plains and Kinder Advantage
EnCana Proposed Piceance to Cheyenne lateral
TransColorado
Expansion
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Pipeline Export Projects Proposed
• Kinder Morgan Advantage
• Northern Border Bison Project
• Enbridge Chicago Project
• Southern Star Western Frontier Project
• El Paso Ruby Project
• Kinder Morgan TransColorado Expansion.
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Intraregional Projects
• Questar Kern Expansion• El Paso Front Range Expansions• Xcel Front Range Projects• Kinder Huntsman Storage Project• Totem Gas Storage Project• Questar Gas Storage Project• Wyoming Interstate/Overthrust Backhaul Projects• Jonah/Opal/Powder/Wind River
Gathering/Processing Expansions• EnCana NW Colorado to Cheyenne Project
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Expansions Since 2001 Acquisition:
• Phase I: 9000 HP
50 miles of 20”
• Phase II: 9000 HP
40 miles of 20”/24”
• Phase III: 3000 HP
90 miles of 20”/24”
250 MMcf/d Plant
2001 Capacity: 450 MMcf/d
2004 Capacity: 1180 MMcf/d
Current Volume: 925 MMcf/d
Teppco Jonah Gas Gathering System
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Cost of Limited Infrastructure to Wyoming
• $130 + million in Federal/State royalties and severance taxes – 2002.
• $1 million per day in March 2003.• Stalled investment in development of mineral
resources.• Limited ability to predict revenues with certainty.
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$1 Billion in Bonding Authority
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Our Team of Finance Professionals
• Goldman Sachs – Jeff Brown• Merrill Lynch – Ed Burdett and Greg Dawley• George K. Baum – Mary Keating-Scott and Geoff Urbina• Kutak Rock – John Wagner
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The Wyoming Pipeline Authority Will
• Promote all industry sponsored and supported projects.• Proactively promote infrastructure development within the state
and the Rocky Mountain Region.• Promote efficient utilization of existing infrastructure in a cost
effective manner.• Promote development of Wyoming’s mineral resource base in a
systematic, streamlined and environmentally responsible manner.
• Utilize its bonding authority to build or cause to be built infrastructure projects that will enhance state netbacks and promote development of a resource base that is in the nation’s best interests.
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Thanks for the opportunity to speak with you.
Bryan Hassler
Interim Executive Director - Wyoming Natural Gas Pipeline Authority
Ph 303-357-7314
Cell 303-748-6473
Fax 303-948-1428
Email [email protected]
Wyoming Pipeline Authority Presentations Can be Accessed via the Wyoming Oil & Gas Conservation Commission Website at: www.wogcc.state.wy.us