Ceres Monthly Newsletter – Flaring of Gas/NatGas
Ceres Monthly Newsletter:
Ceres Monthly Newsletter – Flaring of Gas/NatGas
This report starts to document the amount of gas (nat gas) that is flared in the production of oil/gas.
In the US we can’t get the nat gas to market, so it is imply flared in many cases. The oil (wet particulates) are much more valuable so that is shipped by pipe if possible, but by truck or train if not.
One statement from a CEO in the oil patch has commented that half of the nat gas produces in the US is being flared. Safety, of course is critical. But this is a humongous waste of energy and environmental waste as well.
Check out the article and then look at the report here: http://www.ceres.org/resources/reports/flaring-up-north-dakota-natural-gas-flaring-more-than-doubles-in-two-years/view
Basic economics is one approach to this issue. If NatGas were more valuable, then there would be very little flaring. Right now it is about $3.50 (per … unit) in the USA. So Nat gas is a byproduct of the production of oil unless it can be readily distributed to market (pipeline). But for the world markets, NatGas is very valuable, let’s say $10. If we can bridge the gap from domestic only to world, then the price would jump and the flaring would, well, burn out. 🙂
The key is liquefied natural gas (LNG). Not coincidentally, LNG is the trading symbol of Chaniere Energy, one the the leading players in infrastructure for exporting LNG.
