Oil Producers Are Burning Enough 'Waste' Gas to Power Every Home in Texas

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Flaring is the controversial but common practice in which oil and gas drillers burn off gas that can’t be easily or efficiently captured and stored. It releases carbon dioxide and is lighting up the skies of West Texas and New Mexico as the Permian Basin undergoes a massive production boom. “It’s a

-- America’s hottest oil patch is producing so much natural gas that by the end of last year producers were burning off more than enough of the fuel to meet residential demand across the whole of Texas. The phenomenon has likely only intensified since then.

“It’s a black eye for the Permian basin," Pioneer Natural Resources Chief Executive Officer Scott Sheffield said at Wednesday at an energy conference at Columbia University in New York. “The state, the pipeline companies and the producers -- we all need to come together to figure out a way to stop the flaring."

There will always be a"mismatch" between the amount of gas produced and pipeline capacity, so some flaring is inevitable, according to Ryan Sitton, the head of the Railroad Commission of Texas. Despite what its name suggests, his agency oversees the oil and gas industry in the state and regulates flaring, allowing companies to burn gas for limited periods, or in times of emergency.

Right now, there’s about 9.5 billion feet a day of gas pipeline capacity in the basin that can reach markets that need the heating and power plant fuel, according to RS Energy Group. That’s not enough to carry the more than 13 billion cubic feet a day of gas that’s being pumped out of wells in the region.

 

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