Not Just Oil in the Rockies
Operators in the Rockies are looking to meet the forecasted demand for natural gas in the western U.S.
With historic winter storms hitting the nation in recent years, natural gas demand has been on the rise and is projected to remain flat or increase despite renewable energy sources coming online. Combined with increasing populations, data centers and tariffs on Canadian natural gas imports, production from U.S. basins will need to increase to meet forecasted demand.
We previously discussed the focus on Uinta’s waxy crude activity surge and major deals in several Weekly Spotlight articles. However, the areas west of the Rockies are poised to be uniquely suited to fulfilling the increasing demand for natural gas in western states.
Using TGS Well Data Analytics, we can see an upward trend in gas production in the Uinta Basin, while the San Juan, Green River, and Piceance basins have been on a downward trend since 2020. San Juan and Piceance are to the east of the mountains and are projected to decrease in overall production, leaving room for operators in Green River and Uinta to increase their production, supported by rising gas prices.
While there is potential for substantial supply across the country, restrictive infrastructure for transporting gas from east to west of the mountains limits how much gas can flow during peak demand. Operators focusing on gas to the west of the divide, such as KODA and PureWest, are looking to fill the gap with their geographical advantage. While PureWest production has trended down since 2020, the company recently stated its intention to meet the expected demand. Figure 3 shows a recent trend to support this.
Despite recent headlines focusing on massive oil deals in the West, players want to meet the increasing need for natural gas.
For more information on TGS Well Data Analytics or to schedule a demo, contact us at [email protected].
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