Lack of Pipelines Hurting Natural Gas Producers in Colorado

November 2016, Vol. 243, No. 11

By Irina Slav, OilPrice.com

Natural gas producers in Colorado have a problem. It’s not a problem that’s unique to them, but it’s potentially more serious than the problem encountered by frackers elsewhere. Colorado, home to the Niobrara shale play, is the fourth-largest natural gas-producing state in the nation, according to the EIA. Over the 10 years 2004-14, gas extraction there rose by 51%, thanks largely to the wide-scale employment of horizontal drilling combined with hydraulic fracturing. But local demand is, alas, not rising in sync with production. It has remained stable in the range of 400-600 Bcf annually since…

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