Pipelines to Alleviate Flaring | Russell T. Rudy Energy LLC
“Rigzone” reports that the Prairie State wants to double pipeline capacity from its current level of 780,000 barrels of oil equivalent per day (boed) to 1.4 million. The state in general, and governor Jack Dalrymple in particular, are pro energy industry. However, concerns over flaring and safety have grown.
While oil production in the state has tripled to over 1 million boed, pipeline capacity has not kept pace. This has led to ever-increasing volumes of crude being transported by rail and truck, and natural gas being flared. While natural gas flaring is down from a high of 36% in September of 2011, it was still at 30% in April, the last month for which statistics are available. To put this in perspective, world-wide flaring is estimated at 3% and domestically about 1%.
To address these concerns, on June 1 the state issued new regulations requiring all applications for drilling permits to contain a detailed gas disposition plan. Regulations for existing wells are expected July 1. When natural gas is flared, the state does not get paid production and severance taxes, landowners do not get royalties, and in some cases, noise pollution is a major problem.
North Dakota residents are even more concerned about traffic and safety issues. Gene Veeder, the head of McKenzie County’s economic development office, indicated that the number of large trucks plying the highways is a sensitive issue. “Our local citizens are less worried about global warming than they are about the 1,100 trucks that go by their mailbox every day.”
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=133710&utm .
