Ralph E. Davis Basin Study: Powder River Basin

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The Powder River Basin is located in southeast Montana and northeast Wyoming and known for its rich coalbed methane potential, which currently supplies approximately 40% of the United States' coal. Coalbed methane production peaked around 500 billion cubic feet per year (Bcf/y) in 2008-2010. While the current overall interest in coal as an industry has not been extremely popular, the Powder River Basin remains a relatively active target for certain basin specific operators due to its great rock properties (high porosity and permeability), low to moderate drilling cost, healthy gas/oil ratio (GOR) and pressure, and abundant takeaway due to its relative immaturity in the development cycle. The Powder River Basin contains major deposits of petroleum, including the giant Salt Creek Oil Field. The oil and gas are produced from rocks ranging from Pennsylvanian to Tertiary, but most comes from sandstones in the thick section of Cretaceous rocks.

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