ONEOK Seeks Sharp Increase In Williston Basin Well Hookups
ONEOK Inc. anticipates connecting 650 new wells in the Williston Basin and mid-continent this year, a 20% increase over 2018, as it disclosed that its natural gas processing fee was increased ten cents to 86 cents per MMBtu.
The company reported total earnings of nearly $2 billion on total operating income of $1.4 billion.
Its Bakken NGL pipeline is operating at full capacity, as volumes averaged 136,000 BPD in the fourth quarter.
The proposed Elk Creek NGL pipeline will move over 200,000 BPD when it is completed in 2019. That 900-mile, 20-inch pipeline will run from Sidney, MT to Buston, KS and cost $1.2 billion. Construction has not started yet.
In the meantime, ONEOK anticipates using rail tanker cars in the second quarter of this year to move NGLs until the Elk Creek line is completed.
ONEOK said that between 25 and 30 rigs drilling in the Bakken can produce as much natural gas volumes as between 70 and 80 rigs did three years ago.
The $66 million in revenue increases was due largely to volume increases in the Williston Basin and Oklahoma.