Proposed spending in the oil and gas industry in the Rocky Mountain region is expected to reach $6.3 billion for projects beginning construction in 2007, according to research by Industrial Info Resources.
The capital spending will be focused on the production, transportation and storage of crude oil, refined products, natural gas, and natural gas liquids (NGL’s), the marketing information services company said.
A total of 41 major projects are being tracked, with an average capital value of $154.8 million.
Industrial Info's research shows $5.9 billion will be spent in constructing new pipelines transporting natural gas, crude oil, NGLs and refined products; about $320 million will be spent on crude oil and natural gas processing facilities; and $109 million will be sepnt in the petroleum and natural gas storage sector.
The construction will be focused in Arizona, Colorado, Montana, New Mexico, Utah and Wyoming. The high dollar value attached to new pipeline projects is the result of several new pipeline proposals to export natural gas from the Rocky Mountains to markets in the Midwest and Eastern United States, Industrial Info said.
The majority of the expected projects should begin construction between April and August of next year, with most new construction activity beginning in June 2007. The completion timeline for this construction activity begins in August of 2007 and ends in June of 2008, with the majority of the projects targeting a completion date in the November/December timeframe, Industrial Info said.
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