Permian Basin Vented Gas Reduction Project

Natural gas flaring in the top U.S. shale basin - Permian basin is poised to rise in 2024.

Elevated flaring, which involves the combustion of excess gas, can decrease shale oil production in the area, as major oil companies aim to curtail the release of carbon dioxide, a greenhouse gas linked to climate change.According to estimates from the U.S. Energy Information Administration (EIA), the Permian Basin stands as the largest shale oil reservoir in the United States, yielding approximately 5.7 million barrels of oil daily and a substantial 22.5 billion cubic feet per day (bcfd) of natural gas.

The pipeline’s capacity to transport gas will need to be increased to match gas production, with an average deficit of 200 million cubic feet per day (mmcfd) expected during 2023 and the initial half of 2024. However, it will increase to approximately 500 mmcfd by May 2024. New pipelines installed in the Permian Basin encompass the Whistler expansion, with a capacity of 500 million cubic feet per day (mmcfd), and the Permian Highway expansion, which can handle 550 mmcfd. Both are anticipated to become operational by late 2023. Additionally, the Matterhorn Express Pipeline, with a capacity of 2.5 billion cubic feet per day (bcfd), is scheduled for completion in mid-2024.

Based on the latest data from the EIA, the combined volume of gas flared, vented, or released into the atmosphere in the United States dropped to its lowest point in four years, totaling approximately 785 million cubic feet per day (mmcfd) in 2021. This amount constituted roughly 0.7% of the total gas withdrawn for that year.

The objective or goal of this project is to minimize the vented gas burned or flared. Also, find out the capacities of pipelines with dynamic markets and constraints in the West Texas area.