How Much Gas Are Energy Companies Burning?

From water supply challenges to toxic emissions and coal plant pollution, the Permian Basin garners its fair share of controversy. Now, oil producers have landed themselves in hot water for flaring more natural gas than disclosed to the state.

The findings come from an analysis of government satellite data conducted by the Environmental Defence Fund, a United States-based, non-profit environmental advocacy group. According to scientists, the amount of natural gas burnt by companies in 2017 is more than 50% higher than figures initially reported to the Texas Railroad Commission, the state’s regulatory oil and gas agency.

Railroad Commission permit regulations go up in smoke

While Permian Basin companies reported burning around 55 billion cubic feet of gas in 2017, satellite data from the National Oceanic and Atmospheric Administration put the figure at 104 billion cubic feet, which suggests a significant gap in permits issued by the Railroad Commission.

“In 2017 alone, Permian oil and gas operators burned enough gas to serve all the heating and cooking needs of the state’s seven largest cities,” asserts Colin Leyden, senior manager for state regulatory and legislative affairs at the Environmental Defence Fund. "That’s roughly $322 million of natural gas that went up in smoke."

Companies accused of covert flaring

While natural gas can often be a lucrative by-product of drilling for oil, pipelines are often at capacity which makes it impossible to transport the resource to market. Instead, companies have resorted to covertly burning off the fuel, which sells for much less than oil. Environmentalists have slammed the practice for failing to exercise transparency and flippantly burning natural gas, which releases earth-warming greenhouse gases and toxic pollutants when flared off.

Railroad Commission Chairman Christi Craddick maintains that rampant flaring will stop when pipeline projects go ahead, though the Environmental Defence Fund says the unlawful waste is dangerous, irresponsible and unacceptable.

“The data show, waste and pollution from flaring in the Permian has been consistently high since at least 2012,” says Leyden. “The truth is, the economics of each well are built around the oil. The market and industry, left to their own devices, is neither willing, nor able, to solve the problem in any sort of reasonable time frame.”

Despite heavy criticism, there's no denying the Permian Basin has revolutionised the face of the American energy landscape. For a closer look at the transformation don't miss 'A paradigm shift for shale: the environmental, financial, and litigative impetus for produced water recycling.'