The burning and releasing of vast amounts of natural gas into the atmosphere in America\u2019s top shale basin is much bigger than previously thought when processing plants are included, Rystad Energy found.<\/p>\n
Research on the controversial practices of flaring and venting —\u00a0described by shale pioneer Scott Sheffield as a \u201cblack eye\u201d for the Permian Basin — has typically focused on emissions by oil producers at the wellhead.<\/p>\n
But gas-processing facilities in the region are receiving more gas than they can handle, so they burned off or released about 190 million cubic feet per day of the fuel last year, raising the total by 30% to roughly 810 million, data from Oslo-based Rystad shows. That\u2019s almost enough gas to supply 5 million U.S. homes.<\/p>\n
\u201cWith the inclusion of estimates for gas plant-related flaring, we observe a significant increase in total Permian flaring and venting compared to our previous update,\u201d the consultancy said in a report.<\/p>\n
The silhouette of an electric oil pump jack is seen near a flare at night in the oil fields surrounding Midland, Texas.<\/p>\n
Flaring has become a major source of negative attention for Permian oil producers in Texas and New Mexico as concerns about greenhouse-gas emissions and climate change grow among consumers and investors. Permian drillers burn or release the gas that comes out of wells as an unwanted byproduct because they lack pipelines to send it where it\u2019s needed.<\/p>\n
Rystad,\u00a0a leading<\/span>\u00a0provider of flaring and venting data, uses information from the U.S. Environmental Protection Agency, the Texas Railroad Commission, which regulates oil and gas in the state, and its own estimates.<\/p>\n Ryan Sitton, one of the regulator\u2019s three commissioners,\u00a0plans to release a first-of-its-kind report on flaring next week to give the public better information. The commission\u2019s reporting has been criticized as \u201coutdated\u201d and \u201cdifficult-to-manipulate\u201d by the Environmental Defense Fund.<\/p>\n The dearth of good-quality data means that total flaring volumes are likely underreported, according to Rystad. Of the Permian\u2019s 50 smallest operators, only seven posted any flaring at all, meaning there are \u201cobvious gaps\u201d in the data, the consultancy said.<\/p>\n \u201cThis implies energy regulators might need to enforce better waste gas reporting standards to ensure that the market has sufficient fact-based visibility on the total volume of flared gas in the Permian,\u201d Rystad said.<\/p>\n