Permian gas flaring hits all-time highs

Dec 11, 2018

0 1,229 Less than a minute

Gas flaring in the Permian Basin reached an all-time high in Q3 2018, as the persistent rise in production collided with severe takeaway capacity challenges in the world’s most prolific shale play.

Rystad Energy estimates that gas flaring in the Permian averaged 407 million cu ft per day in Q3 2018 – and this number is likely to climb even higher once final disposition figures are registered, given the significant level of under-reporting that still exists for September.

Rystad Energy expects flaring to grow well into 2019, reaching a level of at least 600 MMcfd by mid-2019 assuming WTI Nymex oil prices recover to $60 per barrel to support existing activity levels.

In Texas, Ry observes an increased tendency whereby gas is flared on new wells for extended periods – often between four and six months – far beyond the 45-day period covered by the initial flaring permit.

Dec 11, 2018

0 1,229 Less than a minute