As the United States expands its oil and gas sectors this year under the directive of the current administration, several smaller energy companies have proposed new pipelines and infrastructure to benefit from the unprecedented expansion of the US energy sector. Elevation Midstream, an energy infrastructure company based in the Mile High City, has prolonged the open season process for the latest crude-gathering pipeline in Colorado.
Can the United States energy value chain reach even higher crude production this year?
As the US Gulf sees several new developments by some of the largest energy companies in the world, other energy-rich regions and basins in the US have seen energy companies outlining new projects that will add to the overall output capacity for the US.
The United States now tops the gas production by capacity market, and is relatively close to overtaking China in the oil production market as well. To deliver on the expected increase in demand for energy, several new developments have been announced, along with a plethora of new open seasons aimed at attracting shipping commitments from maritime transportation companies.
The Centennial State will soon see a new crude gathering pipeline in the near future
Denver recently saw Elevation Midstream announce that its subsidiary, DJ South Gathering, launched an open season to attract interest and commitments from shipping companies that will support the development of the latest crude gathering pipeline in Colorado.
The proposed pipeline will gather and transport crude oil from its origin point in Adams and Arapahoe Counties to the predefined delivery points at the Platteville Complex and Lucerne Station in Weld County, providing Colorado with a new crude oil project that will strengthen regional energy security.
Colorado’s energy sector is faced with a perilous decision this year
As the new open season by Elevation Midstream provides the state with the necessary opportunity to attract binding transportation agreements with interested parties, the sentiment on the ground in Colorado calls for more renewable energy investments.
The Colorado Energy Office has stated that it intends to transform the state’s energy sector by investing heavily in the renewable energy sector. The state’s Governor, Jared Polis, released a framework to accelerate the expansion of the renewable energy sector through the Greenhouse Gas Pollution Reduction Roadmap, which aims for 100 percent carbon-free energy by 2040.
“We’re raising the bar on clean energy solutions for Coloradans. Colorado is transforming the energy sector to reduce greenhouse gas emissions and preserve our state for generations to come.” – Colorado Energy Office
Can the new crude gathering pipeline provide Colorado with an opportunity for midstream growth?
Elevation Midstream has stated that it expects to complete the new crude gathering pipeline and bring it online during the third quarter of this year. Additional pipelines for crude transportation have become a necessity as the domestic crude production market in the US expands. As other energy companies in the US outline new and exciting pipeline developments, Elevation Midstream is aiming to increase its standing in the US energy sector this year.
“We are taking challenges and turning them into opportunities by developing homegrown, local energy production to become independent from foreign sources.” – Mitch Daniels
Will the new open season provide the much-needed shipping commitments?
For Elevation Midstream and its subsidiary, DJ South Gathering, that would be the hope. The prolonged open season will provide interested shipping companies the opportunity to set in place agreements that will elevate the company into the top tier of the US energy sector. Open seasons have become a mainstay in the US energy market and have supported the rapid expansion of the US energy sector over the years.
