June 12, 2020 Read More →

Texas producers wasted $749.9 million by flaring gas

Houston Chronicle:

Oil companies operating in the Permian Basin of West Texas burned and wasted a record $750 million worth of natural gas in 2018, a new report from the Institute for Energy Economics and Financial Analysis, or IEEFA, shows.

Permian Basin operators wasted an estimated 238.1 billion cubic feet of natural gas in 2018 by burning it at oil wells in an industry practice known as flaring or releasing it directly into the atmosphere in another practice known as venting, IEEFA reported.

Cross-referencing commodity prices on days the natural gas was burned, IEEFA estimates that Permian Basin operators burned a record $749.9 million of natural gas in 2018, nearly double the value wasted the previous year.

That flared natural gas, IEEFA said, could have been sold and taxed to produce revenues for companies and royalties for the state.

“Flaring is a gratuitous display of oversupply with detrimental consequences for the environment and is, simultaneously, an impediment to the growth requirements of the Texas economy,” the report’s authors wrote. 

[Sergio Chapa]

More: Report: Flaring wasted $750 million of natural gas in Permian Basin

Posted in: IEEFA In the News

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