Natural Gas in the Rocky Mountains: Developing Infrastructure
September 20, 2007
Highlights
- Recent natural gas spot market volatility in the Rocky Mountain States of Colorado, Utah, and Wyoming has been the result of increased production while consumption and pipeline export capacity have remained limited. This Supplement analyzes current natural gas production, pipeline and storage infrastructure in the Rocky Mountains, as well as prospective pipeline projects in these States.
- Natural gas reserves in the Rocky Mountain States account for nearly 22 percent of the total natural gas reserves in the United States, and are mostly located in unconventional tight‐gas or coalbed formations.
- Dry natural gas production in Colorado, Utah, and Wyoming has increased from an average of 5.49 billion cubic feet per day (Bcf/d) in 2000 to 8.61 Bcf/d in 2006.
- Total natural gas volumes delivered to consumers in Colorado, Utah, and Wyoming are much less than volumes produced, totaling 0.61 trillion cubic feet (Tcf) (average 1.66 Bcf/d) in 2006 which was only slightly above the level of deliveries in 2001.
- Pipeline capacity that exports natural gas flows from Colorado, Utah, and Wyoming was 8.49 Bcf/d in 2006. Efforts to increase the pipeline infrastructure in the Rocky Mountain States are expected to add roughly 1.5 Bcf/d of capacity to transport natural gas from the region by the end of 2008.