Denver-based Taproot Energy Partners LLC said its midstream affiliate plans to construct an oil gathering pipeline at its Platte River property in the Denver-Julesburg (DJ) Basin for Confluence Resources LP.
Taproot, which plans to have the project in service by July 1, said it now has more than 325,000 dedicated acres from five separate producers.
Taproot Rockies Midstream LLC would provide services for Confluence as it develops its DJ position, according to Taproot CCO Garrick Brown. “As our system expands, so does producer access to crude gathering pipelines, eliminating the need for trucking and providing the safest, most environmentally friendly transportation from the wellhead.”
The DJ Basin “experienced a strong surge” in drilling permits During April, moving to 117 from three in March, according to Evercore ISI. Overall, the United States saw an overall increase in permits, jumping 19% from March to April, and up 13% from April 2020.
Domestic crude oil production is set to average 11.3 million b/d in 4Q2021, and 11.8 million b/d in 2022, according to data from the Energy Information Administration.
“In some regions, notably the United States, oil demand is rising as both Covid-19 vaccination rates and economic activity increase,” researchers said. “In other regions, notably India, oil demand is declining because of a sharp rise in Covid-19 cases.”
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