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November 1, 2024
Denver-Julesburg (DJ) and Powder River oil full cycle costs at West Texas Intermediate (WTI) equivalent.
Denver-Julesburg
- Denver-Julesburg (DJ) oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $39.56/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $162.35/Bbl for wells with an IP of under 300 Bbl/d.
- Average Operating costs USD $7.81/Bbl  while royalties & taxes and overhead are USD $20.46/Bbl.
- F&D costs range from USD $5.97-$73.69/Bbl and the 15% producer return ranges from USD $4.86-$59.93/Bbl.
- The assumed WTI differential is USD $0.46/Bbl.
Full Cycle Cost Curve
- Incorrys analysis shows that there is 4,000 MMBbl of oil resource available below USD $50/Bbl and 5,000 MMBbl available below USD $60/Bbl. Current production (2023) was 470 MBbl/d (172 MMBbl/yr).
Powder River
- Powder River oil full-cycle costs at West Texas Intermediate (WTI) equivalent range from a low of USD $48.36/Bbl for wells with an Initial Productivity (IP) greater than 1800 Bbl/d to a high of USD $270.34/Bbl for wells with an IP of under 300 Bbl/d.
- Average Operating costs are USD $8.96/Bbl  while royalties & taxes and overhead are USD $19.35/Bbl.
- F&D costs range from USD $10.51-$129.57/Bbl and the 15% producer return ranges from USD $9.08-$112.00/Bbl.
- The assumed WTI differential is USD $0.46/Bbl.
Full Cycle Cost Curve
- Incorrys analysis shows that there is 1,900 MMBbl of oil resource available below USD $50/Bbl and 5,900 MMBbl available below USD $60/Bbl. Current production (2023) was 155 MBbl/d (56.6 MMBbl/yr).
DJ and Powder River Basins Location
- Denver-Julesburg (DJ) and Powder River are located in northeastern Colorado and eastern Wyoming extending into parts of Nebraska, South Dakota and Montana.
Number of Drilling Locations
- Incorrys estimates that DJ and Powder River have 57,000 drilling locations with initial productivity above 300 Bbl/d and over 91,000 drilling locations with initial productivity below 300 Bbl/d.
See Also:
Permian Oil Full Cycle Costs
Eagle Ford Oil Full Cycle Costs
Uinta Oil Full Cycle Cost
Williston Oil Full Cycle Costs
Anadarko Oil Full Cycle Costs