New North Dakota Flaring Regulations May Compromise Oil Rate | Russell T. Rudy Energy LLC
Flaring of natural gas associated with oil production is an acute problem in the Prairie State. Worldwide, about 3% of produced gas is flared; in the U. S. it is less than 1%. In North Dakota 36% of gas was flared, but that figure has been reduced to 26% due to new state regulations.
“Rigzone” reports that the North Dakota Industrial Commission mandated a reduction of flaring down to 26% by October 1. Fortunately, the oil and gas industry was able to meet the goal three months early, in July. However, there are concerns that flaring reductions could compromise oil production rates in the future.
Flaring compromises the quality of life for residents of the state, and reduces tax revenues and royalty payments to landowners. To address the problem, in June of this year governor Jack Dalrymple (R) reiterated the state’s commitment to reducing flaring and set a goal of essentially doubling natural gas pipeline and processing capacity. Operators have responded energetically and are making progress in spite of weather, right of way, and logistical issues. It is hoped that both oil production increases and flaring decreases can be concurrently achieved.
To read the article in its entirety, please go to www.rigzone.com/news/article_pf.asp?a_id=135087 .
