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Niobrara draws continued optimism despite lackluster yields

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In 2009, EOG Resources drilled an oil well in northeastern Colorado, which produced an astounding amount of oil – about five times as much as most wells yield. The well was drilled into the Niobrara Shale, which stretches through southeastern Wyoming and northeastern Colorado. Needless to say, it got the oil industry’s attention. Since then, there’s been a lot of hype about the Niobrara. It’s even been compared to the giant Bakken oil play in North Dakota. But recently, wells in the Niobrara haven’t been doing very well, especially not in the Wyoming part of the shale. Nonetheless, oil companies are pushing forward. I spoke with Brad Miller, the general manager for regulatory affairs at Anadarko Petroleum Corporation, to find out why. He says the outlook for the Niobrara is still excellent – you just have to think long-term.