• 1 day PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 1 day Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

Controversial Azeri Pipeline Receives $500M Funding

The European Bank of Reconstruction…

Alt Text

2 Red Flags For The World’s Top Shale Play

Changing legislation and taxation for…

Texas Regulator Sends Warning to Drillers About Gas Flaring

Texas Regulator Sends Warning to Drillers About Gas Flaring

Texas Railroad Commissioner Christi Craddick sent letters to oil and gas drillers to warn them about running afoul of the state’s rules on flaring natural gas. Gas flaring is the process of burning off excess natural gas when drilling a well, which burns off methane, a better environmental outcome than simply allowing it to escape, even though it still produces air pollution. Texas allows operators to do so for up to ten days after a well is completed.

Craddick spoke at a conference in Houston, and according to Fuel Fix she explained the motivation behind the warning, “We have flaring rules in the state and we will be implementing and enforcing those. The letter is going to remind people of that. Sometimes, we’ve had a few not necessarily follow those rules.”

The letters sent by the Texas Railroad Commission, which regulates the oil and gas industry, was meant to remind operators of the rules, according to Craddick. She says drilling in the Eagle Ford Shale is of particular concern.

Related article: Is There Still Opportunity in the Natural Gas Space?

Gas flaring has received increased attention recently, but regulators are only catching up to a process that has been underway for some time in places like North Dakota and Texas. Regulators in the Bakken are trying to find ways to incentivize the industry through carrots and sticks to capture the natural gas instead of flaring it. As NPR reported in late January, an estimated $1 million is being burned off each day in the Bakken.

The problem is that the infrastructure often does not exist, and the gas is simply not lucrative enough to build out enough equipment and pipeline capacity to capture the natural gas and transport it to market. Natural gas is worth a small fraction of the value of oil. “We know the infrastructure is behind. We don’t want to shut you in. But we also wanna make sure you follow the rules,” Craddick said.

By. Joao Peixe of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News