Rystad Energy: Permian gas flaring hits all-time highs
Dec. 4, 2018
Gas flaring in the Permian basin reached an all-time high in this year’s third quarter as the persistent rise in production collided with severe takeaway capacity challenges, according to Rystad Energy.
Gas flaring in the Permian basin reached an all-time high in this year’s third quarter as the persistent rise in production collided with severe takeaway capacity challenges, according to Rystad Energy.
Rystad estimates that gas flaring in the Permian averaged 407 MMcfd in the third quarter, and this number is likely to climb even higher once final disposition figures are registered, given the substantial level of underreporting that still exists for September.
Rystad also expects flaring to rise well into 2019, reaching a level of at least 600 MMcfd by mid-2019 assuming West Texas Intermediate oil prices recover to $60/bbl to support existing activity levels.
The energy research company also noted that, in Texas, there is an increased tendency whereby gas is flared on new wells for extended periods—often between 4-6 months—far beyond the 45-day period covered by the initial flaring permit.
