PowerPoint BryanHassler

Natural Gas & Oil Infrastructure in the RockiesAn Update: 

Natural Gas & Oil Infrastructure in the Rockies An Update Interstate Oil and Gas Compact Commission Midyear Meeting Billings, Montana May 22, 2006

A Lesson From Natural Gas: 

A Lesson From Natural Gas

Garfield County, Colorado: 

Garfield County, Colorado Colorado Oil and Gas Commission

Slide5: 

AAPG

Slide6: 

Total of 2,127 Mcfd added in the past 5 yrs

THE FUTURE!: 

THE FUTURE! 1.8 Bcfd 42 –inch diameter 1,323 Miles

Crude Oil In The Rockies: 

Crude Oil In The Rockies

What Has Happened to Rockies Crude Prices??: 

What Has Happened to Rockies Crude Prices?? Rockies production increasing Express Pipeline capacity increased in 2005 adding approximately 110,000 of potential additional Canadian crude Export pipelines approached capacity in late 2005 Suncor refinery fire eliminates demand for 60,000 Bopd Refinery turnarounds and low sulfur diesel requirements exacerbate the problem

Regional Crude Production is Growing in Some States: 

Regional Crude Production is Growing in Some States EIA 395 MBOPD 424 MBOPD

Current Status of Infrastructure: 

Current Status of Infrastructure

Production/Refinery Balance: 

Production/Refinery Balance Source: EIA

The Law of Supply and Demand: 

The Law of Supply and Demand Wikipedia

The Crude Market a Few Months Ago: 

WTI $60.75 OK Sweet $60.75 WY Sweet $35 KS $55.75 Prices on 3/23/06 The Crude Market a Few Months Ago

The Market Today: 

Platts – North America Crude Wire The Market Today

The World Might be Fine but for the Fact that …….: 

The World Might be Fine but for the Fact that …….

Slide21: 

Canadian Association of Petroleum Producers (CAPP)

Slide22: 

Canadian Association of Petroleum Producers (CAPP)

Solutions to Crude Oil Bottlenecks in the Rockies: 

Solutions to Crude Oil Bottlenecks in the Rockies

Slide27: 

The Future is Rail? Standard tank car is 23,500 gallons or 525-550 Bbls.

Slide28: 

Current Proposed Expansions are a Band-Aid to Long Term Development Efforts Kinder Morgan Platte Pipeline (added pumping capacity) 15-25,000 Bbl/D $1.50 per Bbl tariff (new shippers only) Enbridge (to Clearbrook, MN) 35,000 Bbl/D $0.15 per Bbl tariff (all shippers)

Slide29: 

Near term (2 yr) Kinder Morgan Pony Express Re-conversion up to 200,000 Bbl/D

The Plan to Convert from Crude to Natural Gas: 

The Plan to Convert from Crude to Natural Gas

Cost of a Reconversion: 

Cost of a Reconversion Natural Gas Contracts $124 million Reconversion Cost $115 million Cost Allocation to Existing Pipe $100 million? Total Cost to Convert $339 million

Slide32: 

Follow an NGL Line to Cushing? Add in El Paso Medicine Bow to get you north and central.

Slide33: 

Grass roots pipeline from Wyoming to Cushing, OK 400,000 Plus Bbl/D – Up to $1.2 billion Longer term (3-5 yr)

Slide34: 

Solutions Require Commitments Long Term Commitments to Capacity Support of Canadian Imports to Anchor a Solution Support and Commitment of Refiners to Buy Wyoming Crude Support of Producing Community to “get behind a common solution – quickly”

Slide35: 

Wyoming Pipeline Authority Bryan Hassler Executive Director 303-748-6473 152 North Durbin Street, Suite 230 Casper, Wyoming 82601 Office (307) 237-5009 Fax (307) 237-5242 www.wyopipeline.com