Permian Flaring 'At All-Time High' : Rystad
Gas flaring in the US Permian basin, the world's most prolific shale play, reached an all-time high in third quarter 2018, said Oslo-based consultancy Rystad Energy December 4.
Rystad Energy estimates that gas flaring in the Permian, which covers part of western Texas and southeastern New Mexico, averaged 407mn ft3/d during 3Q 2018 (the equivalent of 4.2bn m3/yr) – and said the number is likely to climb even higher once final disposition figures are registered, given the significant level of under-reporting that still exists for September.
Moreover the consultancy expects flaring there to grow well into 2019, reaching a level of at least 600mn ft3/d by mid-2019 assuming WTI Nymex oil prices recover to $60/b to support existing activity levels. In Texas, it said it had observed an increased tendency whereby gas is flared on new wells for extended periods – often between four and six months – far beyond the 45-day period covered by the initial flaring permit.
Rystad's data for Permian flares are consistent with latest published gas flaring estimates from the World Bank in July 2018 based on satellite imaging which showed a rise in US flaring.
The World Bank data showed that, whereas global flaring declined by 4.7% year on year to 140.6bn m3 in 2017, the amount flared in the whole of the US increased by 0.6bn m3 since 2016 to reach 9.5bn m3 last year. Increased associated gas from shale oil production and insufficient gas gathering infrastructure in key producing areas are factors behind the increase in US flaring. Although the past two years marked declines from recent US flaring peaks of 11.3bn m3 in 2014 and 11.9bn m3 in 2015, according to the World Bank data, the 2017 US figure was 0.3bn m3 more than in 2013. As such the US was the fourth largest gas flaring nation in 2017 after Russia, Iraq and Iran, compared with sixth in 2016, fourth in the previous two years, and sixth in 2013.
Graphic credit: Rystad Energy