Methane Clips: June 11, 2018

 

General Coverage

 

Texas Considers Reversal Of Historic Limits On Flaring. According to E&E News, “Oil and gas regulators in Texas may decide in the next few months whether to allow producers to flare more natural gas from well sites in the Permian Basin, to help relieve a glut caused by a lack of pipelines. The Permian Basin produces large amounts of gas along with oil, and the gas lines that serve the region are nearly full. Some producers are in discussions with the state Railroad Commission about simply flaring more of the gas because it can’t be transported to market without pipelines. With oil prices rising above $70 a barrel, companies can ship crude by truck and still turn a profit. ‘What they’re asking for is, hey, if we run into these natural gas capacity issues like we’re forecasting, we’d like some more broad flexibility,’ said Ryan Sitton, one of the three Railroad Commission members who would likely vote on a change. The situation could come to a head in a few months, and the pipeline constraints could last about a year until new routes are in place. No one has formally asked the Railroad Commission to change its policy on flaring, Sitton said. And there are concerns that any changes in the current rules would unfairly benefit small producers at the expense of larger producers that either own their own transportation systems or pay for long-term contracts on pipelines.” [E&E News, 6/11/18 (=)]