US Powder River Basin Shale Market Size, Share & Trends Analysis and Forecast 2021-2025

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

The Powder River Basin is predominantly located in the northeast of Wyoming and southeast Montana. In 2019, production from the shale reached almost 213 thousand barrels of oil per day (mbd) and 992 million cubic feet per day (mmcfd) of natural gas, which places Powder River in the Top 10 resource plays in the US by total production in 2019. Before the Covid-19 pandemic caused operators to reduce the spending as well as production, crude oil supply in the play was consistently holding an upward trend with 3% increase on a monthly basis. However, in 2020, as in other plays in the country, crude oil production plummeted by almost 30% in 2020, while natural gas supply fell in 2020, which is a 28% drop from the same year. However, the production somewhat recovered.

What are the market dynamics of the commodities produced in the Powder River Basin?

The outbreak of the COVID-19 disease in China and its rapid spread around the world in 2020 brought the worldwide movement of people and goods to a halt. This led to a crash in oil prices and thus, the drilling activity across the US shale plays slowed down. The uncertainty surrounding the crude demand recovery from the pandemic led operators in the Powder River Basin to scale back their capital investments and re-adjust the production output.

However, the Powder River basin was relatively less affected by the downturn when compared to other major plays. Indeed, there was a 30% drop in crude oil and natural gas output in Powder River Basin in May 2020, but production nearly rebounded a month later to pre-pandemic levels. Nevertheless, the growth rate observed during the period was slower compared to that of 2019.

What are the drilling activities taking place in the Powder River Basin?

During January 2019 – August 2021, there were approximately 1,336 new permits that were being issued cumulatively for wells in the Powder River Basin. Permit activity declined in 2020 owning to the COVID-19 outbreak. The oil price crash due to global lockdowns made shale drilling uneconomical. Thus, permit applications fell in H1 2020 by 29% annually with only 223 new permits issued to operators in the Basin. This trend continued during H2 2020, with new permit activity further dropping by 71% on an annual basis to 119 permits.

Despite the oil price recovery in 2021, permit activity in the Powder River Basin remained subdued in H1 2021 on an annual basis. New permit applications were down 19% over the same period last year. However, when compared with H2 2020, permit activity was up by 51%. This upward trend continued with the issuance of 88 new permits.

What are the recent merger and acquisitions in the Powder River Basin?

Merger and acquisition activity in the Powder River Basin is on a recovery path after the industry slowdown in 2020. The fall in demand and crude oil price crash left many operators in the Powder River Basin in distress. Hence, deal activity in the Basin is yet to gain momentum in terms of a number of transactions, as operators continue to observe capital discipline despite notable improvement in energy prices.

In 2020, Powder River Basin recorded four deals, of which three deals were announced after the COVID-19 induced downturn. as demand picked up during the second half of 2020, operators capitalized on the low valuations to acquire other drillers in the US Lower 48. Thus, some operators also acquired companies in the Powder River Basin to expand their positions. In November 2020, Contango Oil & Gas announced the acquisition of assets in Wyoming and Montana for US$58 million. In December 2020, Canadian Overseas Petroleum announced the acquisition of Atomic Oil & Gas for US$54 Million. Both the deals were completed in 2021.

What are the major counties producing gross crude and condensate in the Powder River Basin in 2020?

In 2020, Converse county in Wyoming was the largest producer of crude oil and condensates in the Powder River Basin, followed by Campbell, Natrona, Powder River, and Johnson. Converse county from Wyoming was the largest producer of natural gas, followed by Campbell, Johnson, and Powder River.

Major counties in Powder River Basin, by production of crude oil and condensate

Major counties in Powder River Basin, by production of crude oil and condensate

For more insights, download a free report sample

Who are the major players in the Powder River Basin with a prominent presence?

In 2021, Occidental Petroleum had the highest leasehold by net acres in the Powder River Basin, followed by EOG Resources, Devon Energy, Chesapeake Energy, and Vermilion Energy. EOG Resources is one of the largest producers of crude oil and natural gas from this play.

Occidental Petroleum led the market with a strong financial standing followed by EOG Resources Inc, Devon Energy Corp, Continental Resources Inc, and Vermilion Energy Inc. Most of the companies in the Powder River Basin had a profitable first quarter mainly due to a strong crude oil price level. The major leasehold of the company is situated in the Converse County of Wyoming state.

Major players in Powder River Basin, by net acreages

Major players in Powder River Basin, by net acreages

To know more about key players, download a free report sample

Market report scope

Production Capacity of Crude Oil and Condensate Production (Year – 2020)

179.2 mbd
Production Capacity of Natural Gas Production (Year – 2020) 906.4 mmcfd
Growth Rate of Crude Oil CAGR of >6% from 2021 to 2025
Base Year for Estimation 2020
Market Commodities Crude Oil and Natural Gas
Forecast Period 2021-2025
Key Players Occidental Petroleum, Continental Resources, Vermilion Energy, Chesapeake Energy, Devon Energy and EOG Resources.

Scope

The report analyses the crude oil and natural gas appraisal and production activities in the Powder River Basin in the US. The scope of the report includes: 

  • Comprehensive analysis of crude oil and natural gas historical production and outlook during 2018-25
  • Detailed information on impact on well development, permits, and deals against the backdrop of the COVID-19 pandemic
  • In-depth information of well productivity and well completion parameters across Powder River Basin in the US
  • Analysis of top companies’ net acreage, planned capital expenditure in 2021, as well as crude oil and natural gas reserves and production stats as of 2020
  • Up-to-date information on major mergers and acquisitions across the Powder River Basin between 2019 and 2021

 

Reasons to Buy

  • Develop business strategies with the help of specific insights into the Powder River Basin in the US
  • Plan your strategies based on economic viability and expected developments in the Powder River Basin
  • Keep yourself informed of the latest M&A activity across the Powder River Basin
  • Identify opportunities and challenges across the Powder River Basin

Table of Contents

1. Overview 5

1.1 Powder River Basin, Recent Developments and Trends 5

2. Powder River Basin, Introduction 7

2.1 Powder River Basin, Formation Overview 7

3. Powder River, Production and Activity Overview 8

3.1 Powder River Basin, Production Analysis, 2018-2020 8

3.2 Powder River Basin, COVID-19 Impact on Production 11

3.3 Powder River Basin, Production Outlook, 2021-2025 12

3.4 Powder River Basin, Drilling Activity 13

3.5 Well profile 16

4. Permian Basin, Competitive Benchmarking 18

4.1 Powder River Basin, Major Companies with Prominent Presence, 2021 18

4.2 Powder River Basin, Financial Standings of Major Companies 20

4.3 Powder River Basin, Operational Performance of Leading Operators 21

4.4 Powder River Basin, Completion Parameters, 2019-21 22

4.5 Powder River Basin, Plans of Major Companies 25

4.6 Powder River Basin, Cost Trends, March 2021 26

5. Powder River Basin, Analysis of Bankrupt Companies 27

5.1 Chesapeake Energy 27

6. Powder River Basin, Associated Infrastructure 28

6.1 Pipelines 28

7. Mergers and Acquisition Activity in the Powder River Basin, 2019-2021 30

7.1 Overview of M&A Activity 30

7.2 Major Acquisitions 30

8. Appendix 32

8.1 Abbreviations 32

8.2 Methodology 32

| Contact Us 33

Table

Table 1: Powder River Basin, Crude Oil and Natural Gas Production, 2018-2020 8

Table 2: Powder River Basin, Net Acreage by Company, 2021 18

Table 3: Powder River Basin, Reserves and Production by Major Companies, 2020 – 2021* 19

Table 4: Powder River Basin, Financial Standings of Major Companies, Q2 2021 20

Table 5: Powder River Basin, Operational Performance of Leading Operators, as of August 2021 21

Table 6: Powder River Basin, Planned Capital Expenditure by Major Companies, 2020-21 (US$ million) 25

Table 7: Chesapeake Energy, Powder River Basin, Key Operational Parameters, 2020 27

Table 8: Powder River Basin, Reserves and Production by Major Companies, 2020 29

Table 9: Powder River Basin, Major Deals by Oil and Gas Companies, 2019-21 31

Figures

Figure 1: Total Production in Powder River Basin, 2018-2021 5

Figure 2: Rig count in Powder River Basin, and West Texas Intermediate (WTI) future prices, 2019-2021 6

Figure 3: Powder River Basin, Crude Oil and Condensate Production by County (mbd), 2018 – 2020 9

Figure 4: Powder River Basin, Natural Gas Production by County (mmcfd), 2018-2020 10

Figure 5: Powder River Basin, COVID-19 Impact on Production, 2021 11

Figure 6: Powder River Basin, Production Outlook, 2021 – 2025 12

Figure 7: Powder River Basin, Number of Well Permits by County, Wyoming, January 2019 to August 2021 14

Figure 8: Powder River Basin, Well Permits by Key Operators, Wyoming, January 2019 to August 2021 15

Figure 9: Powder River Basin, Well Profile for Crude Oil Production 16

Figure 10: Powder River Basin, Well Profile for Natural Gas Production 17

Figure 11: Powder River Basin, Proppant Mass (million lbs.) vs Lateral Length (ft) 22

Figure 12: Powder River Basin, Average Peak Crude Oil Production vs Lateral Length (ft) Quartile 23

Figure 13: Powder River Basin, Peak total Production vs Lateral Length, 2019-2021 23

Figure 14: Powder River Basin, Total EUR vs Lateral Length, 2019-2021 24

Figure 15: Powder River Basin, Major Companies by Well Costs (US$ mil), August 2021 26

Figure 16: Powder River Basin, Major Active Crude Oil and Natural Gas Pipelines by Capacity, August 2021 28

Frequently asked questions

US Powder River Basin Shale Market Size, Share & Trends Analysis and Forecast 2021-2025 thematic reports
Currency USD
$3,999

Can be used by individual purchaser only

$11,997

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

US Powder River Basin Shale Market Size, Share & Trends Analysis and Forecast 2021-2025 was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at US Powder River Basin Shale Market Size, Share & Trends Analysis and Forecast 2021-2025 in real time.

  • Access a live US Powder River Basin Shale Market Size, Share & Trends Analysis and Forecast 2021-2025 dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.