Why vent or flare natural gas?

Texas Mineral Rights Reeves County, TX
1

Can someone explain why the well operators are wasting natural gas by venting/flaring?

To me it seems like drilling a water well and letting the water flow out on the ground.

2

It is because there’s not enough pipeline or gathering systems in place and the price of oil is outweighing the current price of gas. They currently have several pipeline projects working, but won’t be completed for several months. Anyway you look at it, it’s money up in smoke.

Scott

3

And they can’t just stop extracting the gas?

4

I would think since both the oil and gas are being produced in the same interval that shutting one in would stop flow of the other, but I know a man that’s a drilling consultant working in the area and I will ask him.

Scott

5

Thanks, Scott!

6

J. Matthews,

I somewhat got an answer to your question. The gas can’t be blocked in due to the “gas” drive of most wells. By blocking gas flow, it will also stop flow of the oil. Some companies are putting in temporary poly pipe for the capturing of the gas and others are just flaring. Seems to be choice of the operating companies. He did say that the pipelines were coming along good and probably in a few months less wells will be flaring off gas.

Hope this helps…

Scott

7

J. Matthews – putting dollars and cash flow into the equation… GIVEN: if you have a well with natural gas ‘associated’ with oil… you cannot selectively produce one and not the other. So, on a Btu per unit equivalent basis, if you are receiving $17 per MMBtu for your oil (i.e., ~$100/bbl)… AND you do not have a ready outlet (pipeline) to accept your ‘associated’ gas… you may very well elect to burn (flare) your otherwise ~$2.50 per MMBtu gas? In cash flow terms… $17/unit ‘in hand’ at a cost of ‘wasting’ $2.50 gas. Later – Buzz

8

Scott & Buzz:

Thank you for giving me some perspective on the production business.

This is all alien territory for me. :slight_smile:

I assume that, if there is a proper delivery/storage system in place, then the operator would be able to separate the gas and oil production and sell both to make even more money?

9

Yes, the use of an oil, gas, water separator is typically installed on the lease to separate the various phases and they are sent to either storage tanks or to gathering lines. Seems right now the drilling activity in the area exceeds the pipeline capacity in the area.

Scott

10

So I have been reading.

Now if they’ll just start drilling in A-3151. :slight_smile:

Scott B said: Seems right now the drilling activity in the area exceeds the pipeline capacity in the area.

Scott