The US Shale Industry is Burning More and More APG
Texas oil producers are trying to get rid of excess natural gas by flaring it.
Regulator The Railroad Commission of Texas (RRC) last week approved 21 requests from operators, mostly in the Permian and Eagle Ford shale plays, for exemptions from the flaring ban. Moreover, the requested combustion volumes are more than four times higher than the level approved last year.
Flaring of unwanted gas has recently come under greater regulatory scrutiny as environmental groups and climate activists seek to crack down on practices that release greenhouse gases.
However, now producers are faced with a dilemma: crude oil prices are above $80 per barrel, but gas prices remain low, sometimes reaching negative values, Reuters recalls.
Operators can seek exemptions from flaring rules in Texas for safety, maintenance or emergency reasons, and during the first 10 days of production when a new well is brought online, RRC said.
Prices at the Waha hub in West Texas closed at minus $2.99 per billion Btu in mid-April, the lowest since December 2022.
