After Tough Start for Year, Crestwood’s Bakken System Sets Records in Fourth Quarter
After a partial shut in during early 2020 amid reduced producer activity, Crestwood Equity Partners LP’s Arrow system in the Bakken Shale achieved record volumes in natural gas, crude and water in the final quarter of the year, with “a lot more activity” expected in 2021, according to management.
“The Bakken play remains extremely economic and as we look into 2021, in a $55-60/bbl crude price environment, we anticipate a lot more activity in 2021,” CEO Bob Phillips said last week on the fourth quarter earnings call.
The midstream company expects around 45 three-product wells, to be comprised of crude oil, natural gas and water, to be connected to the Arrow system in North Dakota this year if crude prices remain near $60. Twenty-five to 30 now are drilled but uncompleted wells. “All of that new production is expected to drive growth in natural gas and produced water volumes year/year,
Author Bio
Matthew is a senior energy and materials specialist with The Motley Fool. He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries: Follow @matthewdilallo
Last year was one of the most challenging years the energy industry has ever faced. Demand fell off a cliff as the COVID-19 outbreak nearly ground the global economy to a halt. That forced oil and gas producers to shut in wells and shut down their drilling programs, which impacted the volumes flowing into midstream systems, like those operated by master limited partnership