In stead of wasting, burning off the gas they will now use it to reduce production cost.
https://oilprice.com/Energy/Energy-G...e-Permian.html
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In stead of wasting, burning off the gas they will now use it to reduce production cost.
https://oilprice.com/Energy/Energy-G...e-Permian.html
They most likely flare the gas because there is no natural gas production equipment and pipeline available to produce it. If they are actually flaring that much gas at ONE location it makes no sense to not produce the gas.
I smell something fishy with the numbers in that article.
In federal waters off the US coast it's illegal to flare natural gas unless it's for emergency purposes, flow rating a new well or you have permission from the government to temporarily flare the gas.
Good to see they are finding a way to utilize the gas. In the article it talks about Baker Hughes, an oil service company, bottom line being hurt by flaring the gas. That doesn't make sense unless Baker Hughes owns the lease. How can a service company's profits be hurt by the customer, the company that owns the lease/land? A service company is just that, they provide services to the company who owns the lease/land.
The stuff they "flare" is not one gas. It is a varied mixture and takes equipment to separate into pure form. You have to have the ability to transfer the raw gas to a refinery to be purified. Not really cost effective unless the equipment is at the collection site. But the gas is high in voc's and should be dealt with. Methane is still coming out of shut down wells continuously for many years. For decades they have just burned it for safety reasons.
Unrefined natural gas can be used as fuel at long as certain types of gas are in small enough numbers. Most of the nat gas in the formations in the US is OK to use as fuel.
I worked as a natural gas compressor mechanic for 14 years, until my knee issues. The engines powering the compressors ran off the natural gas that the compressor was pumping. That gas came straight from the well.
Good way to use it right at the source.