The large negative basis differential in the Rocky Mountain region is likely to shrink a little over the long term given the planned increases in demand from new power generation and pipeline capacity, according to an in-depth analysis by Denver-based consulting firm Bentek Energy LLC. However, Rockies basis spreads probably will remain wide as gas supply, particularly from the Powder River and Green River basins in Wyoming and the Uintah Basin in Utah, continues to rise rapidly in response to the enormous growth of gas-fired power generation in the West.
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Bentek: Rockies Basis Likely to Remain Depressed, Despite New Pipes, Generation
The large negative basis differential in the Rocky Mountain region is likely to continue over the long term despite the planned increases in pipeline capacity, according to an in-depth analysis by Denver-based consulting firm Bentek Energy LLC.
October 30, 2002