Over the next decade as the Rocky Mountain is saved byincreasing pipeline transportation, the trend of reserve growth inrecent years will finally pay off in dramatic production increases,Fred Julander, past chairman of the Colorado Oil & Gas Assoc.told the group’s annual meeting.

“We have a large inventory. We’re carrying excessive carryingcosts and it’s because we still don’t have our transportationsystem straightened out like we should to the point where we canaccess markets around the country. But that’s coming and it’simproving,” Julander told the Denver meeting.

From 1991 to 1996 gas reserves in Wyoming grew 25%, in Colorado34%, and over past two years sharp increases in both states inbasins such as the Powder River, Piceance and Jonah Field haveshown “how new technology has made reaching unconventionalresources much easier. There are a couple million acres in thePowder River Basin that are expected to produce gas from coal.Barrett Resources and Western Gas Resources are planning to drillthousands of wells,” Julander said.

In 1995 the U.S. Geological Survey estimated there was only 1Tcf in the Powder River Basin, but Julander sees 5 Tcf and possiblymore. In 1996 the Rockies represented 21% of total U.S. reserves.That’s up from 12% a decade earlier. Julander expects that increaseto continue.

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