The US Shale Industry is Burning More and More APG
Oil producers in Texas 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.
Lately, the flaring of unwanted gas has 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, reminds Reuters.
Operators can seek exemptions from Texas flaring rules for safety, maintenance or emergency situations, as well as during the first 10 days of production when bringing a new well 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.
