Wyoming’s Powder River Basin (PRB) is looking good to oil companies again. Plans are being revealed for expanded horizontal drilling.
The PRB has the advantage of “optionality” and strong well rates while the Permian has takeaway capacity problems.
“While some of the other major plays are dealing with constraints and rising differentials, the [PRB] has benefited from favorable well economics along with the promise of expanding infrastructure (in the future),” S&P Global Platts Analytics analyst Matt Andre said.
“It’s not quite the Permian, but you don’t run into the oil price differential issues and land costs of the Permian, either,” he said.
Andre added, some companies “actually compare the [PRB’s] economics to the Permian. Realistically that is probably only the top wells, but it is still interesting.”
Platts predicts output rising 57 percent in five years.