Oil producers working in the Permian Basin are reportedly continuing to flare and vent associated gas at record high levels.
In a note dated October 7, the Norwegian consultancy Rystad Energy said preliminary data showed that flaring and venting in the Permian had stabilized at the rate of 600-650 million cubic feet per day. It also indicated that most of these volumes were being flared (that is, burned off) rather than vented (that is, released into the atmosphere).
In theory, Rystad said, the launch of the Gulf Coast Express pipeline will give Permian producers more options for their gas in the fourth quarter of 2019. In practice, though, flaring levels may remain high.
“[It] should be noted that the significant number of new well connections in the second half of 2019 might result in a sustained high flaring level, because from an operational perspective, associated gas flaring is normal in the first two weeks following an oil well completion,” explained Artem Abramov, the head of shale research at the Norwegian consultancy.