The Powder River Basin May Be The Next Oil Gold Rush Region & You Need To Know Why!
The Powder River Basin (PRB) is the most important coal-producing region in the United States and has a rich and interesting history. The Powder River Basin is among the most resource-dense regions in the US, with extensive stores of coal, crude oil, natural gas, and other commodities perfect for pressure vessel fabrication. About 120 by 200 miles of area in width and length, respectively.
Vessel Works For Private Clients
The newly announced joint pressure vessel projects in the Powder River Basin demonstrate the rising relevance of horizontal wells and hydraulic fracturing. New ASME fabrication technology has been the driving force behind North America's Unconventional Oil and Gas revolution, which has resulted in a boom in the North American energy supply. Commercial oil production from tight rocks is often said to be unlocked by a combination of horizontal drilling and hydraulic fracturing. The recent boom has also changed the traditional oil and gas landscape.
Why The Boom?
Today, legacy assets are being revived in various locations of North America, including the Permian Basin, the Anadarko Basin, and the Powder River Basin. Unconventional technologies are being utilized to release "not so tight" conventional rocks, which are crucial to the resurrection of the tradition. Other major enablers include enhanced ASME boiler and pressure vessel operational efficiency, using existing infrastructure, and operating in locations with a history of oil and gas production.
Companies are conducting top-to-bottom reviews of legacy reservoirs and using conventional drilling data in addition to reservoir analytical modeling technologies to recover abandoned and economically unfeasible to extract hydrocarbons. The average recovery factor for a conventional oil reservoir is 34%, leaving much room for growth.
A newly announced group development project in Wyoming's Powder River Basin exemplifies the rising significance of using horizontal wells and hydraulic fracturing to increase recoveries from tight and under-performing conventional reservoirs. This is the first indication that new tight conventional reservoir developments may compete with some of the shale/resource plays, as seen by the projected 5,000-well development project in Converse County, Wyoming, which would include 7 or 8 Cretaceous-producing reservoirs.
Why Is It Going to be an Oil Gold Rush?
We believe this basin to be competitive with the major basins such as the Permian, SCOOP, and STACK due to its oil richness, several stacked horizons, and well performance and economics.
What gets us most excited is that you have 5,000 feet of stacked payout, comparable to what is seen in the other basins, and simultaneously generate a high dollar amount per acre. "Highly economical" is how we described the formations at $50/bbl or less, with the Turner zone's core occasionally breaking even in the upper $30s/bbl.
Although the Powder River Basin has long been recognized for its huge coal reserves, its oil potential has recently received more attention from ASME pressure vessel manufacturers. With rigs in tow, operators moved into the area and started gathering data about the region's formations. The basin's opening was delayed because operators reduced spending during the commodities price collapse of 2014-2016.
As an oil play, the basin is still in its early stages of development. Even though many vertical wells have been drilled there, the horizontal development done there with the help of contemporary completion techniques is relatively recent. We've just begun. This delineation phase has been ongoing for some time and will continue for at least another year or two.
The leading companies in the basin now were the ones who got there first, obtained operator-ships, and started drilling years ago. They then hung on to their land and data through the economic slump, waiting for oil prices to increase and costs to decrease.
What sets the Powder apart from the Permian and the Mid-continent is that the area covered by some of these zones is smaller. Indeed, one's geographical location is crucial.
Why does LnL Fabrication love projects in this area for the oil and gas industry?
Wyoming's economy is benefiting from the current energy revolution, oil and natural gas has a major impact on creating more jobs in the oil and gas industry. LnL Fabrication is a major fabrication company located in Wyoming and with the increase in business in the Powder River Basin it has created various opportunities for ASME certified fabrication companies to acquire larger projects. The larger the project, the more opportunities are created for businesses operating in close proximity to this region.
L&L Fabrication has U, R, and VR stamps from the American Society of Mechanical Engineers (ASME)making them certified ASME pressure vessel manufacturers. They manufacture and repair pressure-rated equipment, some of which are listed below.
Fuel Gas Scrubber
Horizontal Heater Treater
Horizontal Trace Heaters
Vapour Recovery Towers
Vertical Gas Scrubber
The employees at L&L Fabrication, INC. are committed to doing excellent work, finishing on time, and ensuring the safety of everyone on the job site at all times. If you are part of the oil and gas industry, operating in the Powder River Basin and need ASME certified fabrication services or a good pressure vessel manufacturer then LnL Fabrication may be the top choice for you. Check out their website (www.lnlfab.com) to view some of the services and industrial equipment they manufacture.