June 19, 2020 Read More →

New Mexico-Permian partnership aims to curb gas flaring waste

Albuquerque Journal:

New Mexico could be closer to a solution aimed at reducing the use of flaring in its oilfields through a partnership with one of the Permian Basin’s major operators.

Flaring, or the burning of natural gas associated with oil extraction, became controversial as environmentalists argued it wasted a valuable resource and creates air pollution while industry leaders contended the practice was an essential activity in operations to safely pressurize wells and eliminate waste.

It’s commonly used in southeast New Mexico’s Permian oilfields that also cross over into West Texas.

EOG and New Mexico’s Oil Conservation Division (OCD) announced successful results of a pilot project aimed at reducing flaring in existing operations.

In 2018 alone, Texas producers flared about $749 million in natural gas, read a report from the Institute for Energy Economics and Financial Analysis which called on the Texas Railroad Commission to enact regulations to curb the practice and ultimately stop it altogether.

“In the aftermath of the oil price collapse of the 1980s, the same bumper sticker could be seen all across Texas: ‘Please, God, give us one more boom. We promise not to piss this one away.’ In the current price collapse and anticipation of a boomlet, prayer has been abandoned and the industry is burning surplus gas to prop up oil and gas prices. It is not working,” the report read.

[Adrian Hedden]

More: New Mexico partners with oil and gas industry to curb flaring, activists call for its end

Posted in: IEEFA In the News

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