Permian Flaring Approaching Record in August, but Relief Is on the Way

Enverus’s analysis of infrared data collected from NOAA’s Visible Infrared Imaging Radiometer Suite (VIIRS) platform suggests that August may be a record month for flaring in the Permian Basin, but relief is in sight in the form of the Gulf Coast Express pipeline. As oil production has ramped up in the Permian, so too has the production of natural gas from the basin. As gas production has increased, it has overwhelmed the capacity of pipelines to move it to market. This surplus of gas has caused regional benchmark Waha gas prices to plunge relative to Henry Hub, even going to a negative cash price with sellers paying buyers to take their gas.         Much of this gas is being produced from oil wells. This so-called associated gas is forcing operators without access to pipelines to make a decision: shut in production of gas (but also oil) or continue to produce oil but either pay someone with capacity to take their gas or burn (flare) off their gas. Operators in Texas must file for a permit to flare beyond 10 days from completing their wells, but the Wall Street Journal reported in July that the regulator, the Texas Railroad Commission (TXRRC), had never denied a… continue reading

Continue reading Permian Flaring Approaching Record in August, but Relief Is on the Way. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply