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Page added on April 16, 2019
In The Permian Basin, Natural Gas ‘Flaring’ Persists, With No Solution In Sight
The axiom, bigger is better may not apply to everything in Texas. For one thing, the Permian Basin is cranking out so much natural gas that producers are burning it in high volumes Bloomberg reports that at the end of last year, producers were burning enough fuel to power every home in Texas.
Matt Smith, director of commodity research at Clipper Data, says the burning, or “flaring,” happens in other oil-producing countries, and the U.S. ranks No. 4 among them in terms of total gas burned. Flaring happens across the U.S., but it’s a growing practice in Texas.
“We’ve seen flaring prevalent elsewhere … particularly in the Bakken Shale up in North Dakota,” Smith says. “But now, as oil production ramps up in Texas, we’re seeing the Permian Basin join that.”
Flaring happens when there isn’t enough pipeline to transport all of the extracted oil, Smith says. And Texas is in the midst of an oil boom. Since natural gas is a byproduct of that extracted oil, there’s more of it that needs to be burned.
“The amount of gas actually flared in the Permian rose by about 85% in Q4 of last year,” Smith says.
He says companies are trying to build new pipelines, which could help reduce flaring, and possibly reduce air pollution as a result. But there’s so much of it coming out of the Permian Basin, those pipelines likely won’t be enough.
“It actually went negative last month,” Smith says. “They were paying people over $3 … to take that gas away.”
Even if companies tried storing the gas on site, Smith says just like the pipelines, the tanks wouldn’t be built fast enough to keep up with production. He says the only real option to stop flaring is to decrease the amount of extracted oil.
The U.S. is on track to lead oil production, worldwide, by 2025, and much of that will be due to what’s coming out of the Permian Basin. More oil will probably mean more flaring. Smith says a core problem is that companies don’t really have a plan for the natural gas; oil is their primary commodity. He says they don’t try to capture and sell it because they don’t have the financial incentive to do so.
“The natural gas is an afterthought, essentially, because they’re making the money on the oil,” Smith says. “You’re gonna have this investment to get that infrastructure in place, but it’s mainly going to focus on the oil as opposed to the natural gas side of things.”
39 Comments on "In The Permian Basin, Natural Gas ‘Flaring’ Persists, With No Solution In Sight"
Doom di Doom Doom on Tue, 16th Apr 2019 7:29 am
It’s DOOM all the way down eh?
Robert Inget on Tue, 16th Apr 2019 8:14 am
TEXAS R R Commission refuses to enforce its own regulations around flaring.
If gas prices were higher, pipelines would be laid no matter what. After-all, Texas ain’t Canada.
Robert Inget on Tue, 16th Apr 2019 8:19 am
BIG OIL Bets Farm on Shale
https://oilprice.com/Energy/Energy-General/Megadeal-Triggers-MA-Spree-In-The-Permian.html
Robert Inget on Tue, 16th Apr 2019 8:24 am
On topic;
https://www.investorvillage.com/groups.asp?mb=19168&mn=198071&pt=msg&mid=19340199
shortonoil on Tue, 16th Apr 2019 3:05 pm
GOR in the Permian is rising fast. The field is gassing out. Investors have been bailing out for more than a year.
Antius on Tue, 16th Apr 2019 4:36 pm
The Germans invested 250-300 billion Euro into domestic renewable energy sources between 1996 and 2014, with apparently little to show for it.
https://tinyurl.com/y33sr7ve
‘250 to 300 billion euros, which is more than the cost of rebuilding from scratch all the French nuclear power plants, is what Germany has invested from 1996 to 2014 to increase by 22% the fraction of renewable electricity into the gross production of the country (that went from 4% to 27%). For this price tag our neighbors did not decrease their energy imports, did not accelerate the decrease of their CO2 emissions per capita, that remain 80% higher to those of a French, increased the stress on the European grid (which is not less useful when electricity production is “decentralized”, all the opposite), and it is debatable whether it allowed to create industrial champions and jobs by millions. If net exports are taken into account – they rose from zero to an average 6% of the annual production, and mostly happen when the wind blows or the sun shines – the fraction of renewable electricity in the domestic consumption is probably closer to 20%.’
Cloggie on Tue, 16th Apr 2019 5:03 pm
“The Germans invested 250-300 billion Euro into domestic renewable energy sources between 1996 and 2014, with apparently little to show for it.”
40% renewable electricity and a world class economy is not exactly “little to show for”.
https://en.wikipedia.org/wiki/Fukushima_disaster_cleanup
“Japan’s economy, trade, and industry ministry recently (as of 2016) estimated the total cost of dealing with the Fukushima disaster at ¥21.5 trillion (US$187 billion), almost twice the previous estimate of ¥11 trillion (US$96 billion).”
Japan really has little to show for, for these 187 billion.
Antius on Tue, 16th Apr 2019 5:18 pm
Face it Cloggie. No nation on Earth has more technical knowledge than Germany. And they have failed to make this work. They export huge amounts of electricity to other countries often at negative prices and still need to burn fossil fuels like crazy in backup power plants. How do you think the rest of Europe are going to manage, bearing in mind that they don’t have the manufacturing economy that Germany has.
Air pollution kills 800,000 deaths per year in Europe. German efforts to phase out nuclear power (by delaying retirement of coal power plants) have actually killed hundreds of thousands of people. Literally hundreds of times more than are predicted to have been killed by Chernobyl. You can’t fix stupid.
Mark in STL on Tue, 16th Apr 2019 5:25 pm
If the associated gas were taxed 2 times higher for being flared versus being sent in a pipeline, much less gas would be flared. Problem is Texas and New Mexico legislatures are controlled by the oil companies.
Cloggie on Tue, 16th Apr 2019 5:32 pm
Antius, the target date “to get this to work” was never 2019, but 2050. They didn’t fail, it’s work in progress.
Meanwhile in the US, it’s open season on whites:
https://youtu.be/_w0KH0iH9-0
Eurasia should closely monitor this and wait for the inevitable “1989” moment to arrive for the stinking West and the f* can be liquidated once and for all.
makati1 on Tue, 16th Apr 2019 5:43 pm
Cloggie, a “work in progress” means you are progressing. Not happening. Techie dreams that will NEVER come true. The world is going to be radically different in a negative way by 2050. Survival, not tech will be the game of the day. Food, water, clothes and shelter. But you will likely not see it, nor will I.
makati1 on Tue, 16th Apr 2019 5:54 pm
“Germany Now Faced With Thousands Of Aging Wind Farms” (2015)
https://oilprice.com/Alternative-Energy/Wind-Power/Germany-Now-Faced-With-Thousands-Of-Aging-Wind-Farms.html
“German Wind Farms To Be Terminated As Subsidies Run Out” (2017)
https://www.thegwpf.com/german-wind-farms-to-be-terminated-as-subsidies-run-out/
“As older turbines see subsidies expire, thousands are expected to be taken offline due to lack of profitability. Green nightmare: Wind park operators eye shipping thousands of tons of wind turbine litter to third world countries – and leaving their concrete rubbish in the ground.” (2018)
https://notrickszone.com/2018/04/24/germanys-wind-energy-mess-as-subsidies-expire-thousands-of-turbines-to-shut-down-environmental-nightmare/
No subsidies … no profits … no renewables. Debt will kill the renewable’s chances all over the world.
I AM THE MOB on Tue, 16th Apr 2019 6:16 pm
I found a picture of Clogg on FB
https://i.redd.it/5ldlznzc4ns21.jpg
Fat, drunk, and stupid is no way to go thru life son.
I AM THE MOB on Tue, 16th Apr 2019 6:34 pm
Joseph Stalin’s approval rating hits historic high
https://www.rt.com/russia/456690-stalin-rating-historic-maximum/
Antius on Tue, 16th Apr 2019 6:43 pm
“Joseph Stalin’s approval rating hits historic high”
Well, he was largely successful in removing Jewish control from the Soviet Union. An impressive achievement, given that they masterminded the Soviet revolution and dominated the communist party ranks until Stalin’s assent to power. By 1940, Jewish manipulation had largely been eliminated from the Soviet leadership. The cold war started not long after. A strange coincidence perhaps?
I AM THE MOB on Tue, 16th Apr 2019 7:49 pm
Antius
Hey its your party that sucks the jews cocks more than anyone..Sheldon Aldeson is the largest political donorin America..
Its the left who stands up to the jews..No president ever has bend over backwards as much as Trump has..He even gave his daughter away to a jew who father went to prison..
Robert Inget on Wed, 17th Apr 2019 11:21 am
Thread subject; Flaring in the Permian.
Flaring Jews is off topic.
Cloggie on Wed, 17th Apr 2019 9:49 pm
Antius
Hey its your party that sucks the jews cocks more than anyone
Nick Griffin and John Tindall never “sucked jewish cock”.
Well, he was largely successful in removing Jewish control from the Soviet Union. An impressive achievement, given that they masterminded the Soviet revolution and dominated the communist party ranks until Stalin’s assent to power. By 1940, Jewish manipulation had largely been eliminated from the Soviet leadership. The cold war started not long after. A strange coincidence perhaps?
That was exactly the reason why the Germans let themselves being lured into the Stalin-proposed non-agression agreement. Hitler told himself that “jewish communism”, he had been warming about since the early twenties, was over. And it was! Stalin’s agents ice-picked Trotsky in Mexico in 1940, a highly symbolic act. It was the death of jewish communism that was replaced by national bolshevism (“red fascism”) as the US jewish mastermind of WW2, Bullitt called it after the war, initiating the Cold War:
https://youtu.be/oWakgLZOiZQ
Bullitt was the one who pressured the British and French into the fatal war guarantee for Poland, the prime tool with which the Americans engineered their desired war in Europe, as privatly confirmed by Chamberlain:
https://documents1940.wordpress.com/2017/09/25/chamberlain-and-the-forrestal-diaries/
The Americans quietly incited the Poles to ethnically cleanse Versailles Poland from Germans… forcing Germany into the war… forcing Britain and France into war… with the Americans, may the devil get them, laughing all the way to the bank.
The very fact that after the British-French war declaration NOTHING HAPPENED…
https://en.wikipedia.org/wiki/Phoney_War
…is a clear indication that neither Britain and France, nor Germany wanted war!
The only ones who really wanted war were the Americans and Soviets… and they had their half-American and jewish-paid traitor Churchill at their disposal to get the job done, by inciting war in Norway. And when that failed he put the Dutch under pressure to let Holland being used for a British-French attack against the German Ruhr-area. Unfortunately it was my country and its weak diplomatic knees vis-avis Churchill that fully unleashed WW2.
German FM Ribbentrop was right:
https://documents1940.wordpress.com/2017/09/26/ribbentrop-charges-allies-plotten-with-lowlands/
Cloggie on Wed, 17th Apr 2019 9:52 pm
unfortunately f* up with html.
God do I HATE this clumsy 5 square inch forum editor, suitable only for one-liners.
Dooma on Wed, 17th Apr 2019 10:31 pm
Mining of one sort or another has brought us into an age that provides a lifestyle that people of the 19th Century could not even imagine.
There is nothing that an exhausted mine leaves behind other than poisonous chemicals and toxic soil/rivers.
Is it worth it though? When I drop something off at the tip/dump…sorry I mean Transfer Station, I can’t believe the redundant technology I see placed into landfill. So then it can leech into the water table.
Robert Inget on Fri, 19th Apr 2019 11:14 am
Like most drugs, ALL energy resources have serious side effects. In 2019 drug companies
are, by law, obliged to warn buyers of mild to dangerous side effects.
No such warnings are handed out with a full tank
of gasoline. Drug takers risk doing their bodies more harm than good. Breathers don’t get choice.
We pay oil and drug companies big bucks to keep alive.
When it gets too hot to work outdoors, when strange sickness sweeps lands free of the lupin, gene altered survivors will thrive in a greatly changed, populations diminished planet.
Robert Inget on Fri, 19th Apr 2019 1:08 pm
ExxonMobil has made its 13th oil discovery in the newest hotspot offshore South America, Guyana, striking oil at the Yellowtail well, which adds to estimated recoverable resource on the Stabroek Block of some 5.5 billion oil-equivalent barrels.
The oil discovery at the Yellowtail-1 well is the fifth discovery in the Turbot area offshore Guyana, which ExxonMobil expects to become a major development hub.
“Similar to the Liza area, successive discoveries in the Turbot area have continuously grown its shared value,” Mike Cousins, senior vice president of ExxonMobil Exploration and New Ventures, said in a statement.
Exxon’s affiliate Esso Exploration and Production Guyana Limited is the operator and holds 45 percent interest in the Stabroek Block, a unit of Hess Corporation owns 30 percent, and a wholly owned subsidiary of CNOOC holds the remaining 25-percent interest.
According to Rystad Energy’s annual exploration review, Exxon was the world’s top oil and gas explorer in 2018, thanks to its significant investment in Guyana.
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Exxon has said that there is potential for at least five floating production, storage and offloading (FPSO) vessels on the Stabroek Block producing more than 750,000 bpd by 2025.
“Startup of the Liza Phase 1 development is on track to begin by the first quarter of 2020 and will produce up to 120,000 barrels of oil per day utilizing the Liza Destiny FPSO, which is expected to arrive in country in the third quarter,” Exxon said today.
Liza Phase 2 is expected to startup by the middle of 2022, with a final investment decision expected soon and subject to government and regulatory approvals. The Liza Phase 2 project would use a FPSO to produce up to 220,000 bpd, while sanctioning of a third development, Payara, is also expected this year, with start-up planned for 2023.
Exxon is now primarily focused on getting the most of the Permian and of the Guyana discoveries, which are its key growth areas for the coming years.
By Tsvetana Paraskova for Oilprice.com
Robert Inget on Fri, 19th Apr 2019 2:56 pm
Nick Cunningham
NICK CUNNINGHAM
Nick Cunningham is a freelance writer on oil and gas, renewable energy, climate change, energy policy and geopolitics. He is based in Pittsburgh, PA.
The world’s largest oilfield services company said its earnings were hit in the first quarter because of a slowdown in shale drilling activity.
“First-quarter revenue of $7.9 billion declined 4% sequentially, reflecting the expected reduction in North America land activity and seasonally lower international activity in the Northern Hemisphere,” Schlumberger CEO Paal Kibsgaard said in a statement. Pricing for its services was “soft,” while fracking and other “drilling-related businesses” saw a dip in activity.
The company was unbowed, noting that the weakness in North America is offset by improving conditions globally. “From a macro perspective, we expect the oil market sentiments to steadily improve over the course of 2019,” as the OPEC+ cuts tighten up the market. Also, Kibsgaard said that the “weakening of the international production base” after “four years of underinvestment” will become “increasingly evident,” which should spark an uptick in spending.
The global E&P sector is “starting to normalize.” In fact, spending could rise by 7 to 8 percent this year around the world.
However, U.S. shale is in a different situation. After spending heavily for years, which successfully ramped up production to record heights, many shale companies are still not performing well financially. As a result, the U.S. shale industry is at somewhat of an inflection point. Kibsgaard said that the sector is “set for lower investments with a likely downward adjustment to the current production growth outlook.” (30)
The ‘crude’ that shale delivers is too light to make diesel economically. (that’s #one)
Two# If you clean up after a cat or horse, you know, it’s a never-ending, often thankless, job.
Shale is like that. As one well begins to approach
pay-off time,(profitability), it’s time to drill another, and another.
One has a choice owning a cat or horse.
(cats, better in small apartments)
When all the convenient, ready to eat oil is gone,
society needs to either find replacements or pony up funding to keep buying kitty liter or wood-chips or straw or new, longer more expensive, oil wells.
At this stage of the ‘game’, we will simply need to pay more to pry what remains of our liquid fuels
from Mother Earth.
As of now, cigarette stocks are just as popular as Big Oil companies.
Robert Inget on Fri, 19th Apr 2019 3:05 pm
This one’s for Davy, who BTW, never apologized
for all the dumb thing he said years back when I predicted events now taking place in Venezuela.
BUSINESS NEWSAPRIL 18, 2019 / 12:04 PM / UPDATED 19 HOURS AGO
Exclusive: Venezuela skirts U.S. sanctions by funneling oil sales via Russia
Marianna Parraga
MEXICO CITY (Reuters) – President Nicolas Maduro is funneling cashflow from Venezuelan oil sales through Russian state energy giant Rosneft as he seeks to evade U.S. sanctions designed to oust him from power, according to sources and documents reviewed by Reuters. (more at link)
https://www.reuters.com/article/us-venezuela-politics-rosneft-exclusive/exclusive-venezuela-skirts-u-s-sanctions-by-funneling-oil-sales-via-russia-idUSKCN1RU2A4?utm_medium=Social&utm_source=twitter
IOW’s If Venezuela does manage to export oil you can be certain it ain’t going to Texas.
Go Speed Racer on Sun, 21st Apr 2019 2:12 am
The problem is the dumb stupid liberals.
This is stranded natural gas.
The liberals want it flared in a tower
which converts it to CO2. That will be
in the atmosphere for 100’s of years.
Instead just release it directly, without
burning it. Methane breaks down
in the atmosphere in only 20 years.
This is obviously the solution is release
the methane gas to the atmosphere.
Actually piping the gas out, to pump into
the natural gas infrastructure, thats
just a communist plot from the dumb
liberals.
After all we will never run out of
natural gas. The supply is unlimited.
If you don’t agree with me, then you
are a stupid yogurt eating libtard who
thinks Trump colluded with the Russians.
Timothy Blaine on Sun, 21st Apr 2019 4:18 am
“The liberals want it flared in a tower
which converts it to CO2.”
Another pull it out of your ass story, Professor Numbnuts.
Conservatard Free Zone on Sun, 21st Apr 2019 4:32 am
Conservatard Free Zone:
Yes, methane is oxidized realitively quickly in comparison to carbon dioxide; nevertheless, its global warming potential is 104 times greater than CO2.
The bottom line is methane emissions have 28 times the impact on temperature of a carbon dioxide emission of the same mass over a 100 year period.
JuanP sock on Sun, 21st Apr 2019 5:17 am
JuanP posted these
Timothy Blaine on Sun, 21st Apr 2019 4:18 am
Conservatard Free Zone on Sun, 21st Apr 2019 4:32 am
Go Speed Racer on Sun, 21st Apr 2019 5:24 am
LOL
ok got it. i was just jokin around anyway.
i think the methane actually “burns” in the atmosphere
because eventually converts to.CO2 just takes
20 years an does it without flames.
In truth there should be a law making it illegal to
deliver oil if the natural gas component isn’t delivered
to the gas network.
LOL but that would take a government that
has IQ > 80 and isn’t corrupt
broken down and worthless.
JuanP on Sun, 21st Apr 2019 8:35 am
Happy Easter everyone.
Rejoice in Christ risen
Davy Identity Theft on Sun, 21st Apr 2019 8:38 am
Timothy Blaine on Sun, 21st Apr 2019 4:18 am
Conservatard Free Zone on Sun, 21st Apr 2019 4:32 am
Davy identity theft on Sun, 21st Apr 2019 8:39 am
JuanP on Sun, 21st Apr 2019 8:35 am
Happy Easter everyone.
Rejoice in Christ risen
Deport illegal aliens on Sun, 21st Apr 2019 10:19 am
fook juanp and his asshole life
Gaia on Sun, 21st Apr 2019 11:04 am
America should be given back to their rightful owners: the countless Native American tribes.
Grendel on Sun, 21st Apr 2019 11:57 am
Debt will be the end of the USA. Good riddance.
Those who Care on Sun, 21st Apr 2019 12:10 pm
Anyone who knows the real scumbag JuanP knows that his using Gaia as his sock is a total disgrace. JuanP pollutes this earth both physically and intellectually. He is truly a blight on the human species. Fuck JuanP
Gaia on Sun, 21st Apr 2019 12:16 pm
I have never threatened Davy. I don’t like his cyberbullying.
Gaia on Sun, 21st Apr 2019 12:21 pm
Davy has treated me like dirt and has never apologized to me.
lying JuanP sock on Sun, 21st Apr 2019 12:30 pm
JuanP is a fake and a liar
Gaia on Sun, 21st Apr 2019 12:16 pm
Gaia on Sun, 21st Apr 2019 12:21 pm