About Us

Devlar was formed in 2005, with the original goal of marketing Lario’s natural gas production. After some early success and the capacity to take on additional business, Devlar decided to offer their services to other E&P companies in the Rockies. Devlar’s goal was not to just purchase gas from producers but to also act as their marketing arm if needed. Offering producers profit sharing programs ensured that Devlar was working on their behalf to help get them the best possible price at the wellhead. Rockies oil and gas production has been somewhat volatile over the past few years. As Coal Bed Methane gas production increased in 2004-2005, there was insufficient export capacity out of the region. Devlar would help regional producers improve on their drastically decreasing basis differentials. As Henry Hub prices were increasing, the local Rockies production was unable to find its way to higher priced markets in the Mid-Continent and California. This caused the basis differentials, the difference between Rockies prices and NYMEX Henry Hub prices, to deteriorate to record levels. From 2005 thru 2008, the average Rockies price was discounted to NYMEX by $2.24 per dkt. Devlar worked with producers to help protect against these widening basis differentials thru the use of transportation, storage, and financially traded basis contracts. Devlar holds firm capacity on multiple pipelines that primarily export gas out of the Rockies.

As the natural gas market slowed down a bit around 2009, Devlar took the opportunity to begin purchasing physical crude oil. Oil production in the Rockies had been declining for decades until 2004-2005. As crude oil prices pushed up above $40 in 2004, drilling increased and helped offset declines in production. Later in the decade, horizontal drilling in the prolific Bakken shale started to pick up momentum. Annual Bakken oil production has been increasing at a rate of 200k barrels per day over the past few years . The Bakken region now accounts for a little over 10% of total U.S. oil production. Drilling efficiency gains have led North Dakota to rank second in crude oil production in the United States, behind only Texas. Devlar started moving their first crude oil bbls in the Bakken region and continues to do so today.

As prices continued to increase, drilling increased and Rockies oil production began a steady increase…accelerating recently primarily with Niobrara Shale production. Devlar started moving trucks from the Bakken into NE Colorado and SW Wyoming in early 2013 with the anticipation that the increases in NE Colorado oil production would push production to the point it would outstrip export capacity out of the region. A scenario is unfolding much like the Rockies gas situation 2005-2008. Devlar is working with regional crude oil producers to protect against widening oil basis differentials by offering term contracts and committing to longer term rail and pipeline projects. As Devlar expands and continues to grow, their goals remain to provide excellent service while offering customers numerous pricing options and flexibility.