Oilfield Witness Observations
In addition to producing and sharing our videos, we also continue to work with journalists, share information on social media and write directly on our blog.
Sharon and Justin published a piece on the economics of gas in the Permian which helps explain why so much gas is flared and vented in America’s largest oil field.
“This is a serious and perhaps fatal flaw in efforts to reduce and stop methane emissions and flaring in the Permian. Various groups, including the IEA’s Global Methane Tracker 2024 report that found the U.S. oil and gas industry led the world in methane emissions, have concluded that up to 40% of methane emissions can be captured if the industry invests in new equipment and that the money from the sale of that captured methane would pay for those investments. Except, for the past several months in the Permian that wasn’t true due to the negative pricing for natural gas. And while the gas prices in the Permian are not typically negative, they reliably trade at a large discount to national prices, as they continue to do now.”
Jack explained why the latest EIA numbers of flaring in the Permian are highly suspect.
“Unfortunately for the RRC, in their scramble to avoid an illegal flaring scandal, they pulled back the curtain on a massive emissions data failure. The RRC implicitly acknowledged that a huge amount of flaring, as much as 84% of total flaring, was occurring without their direct approval. Regardless of whether the flaring was illegal, that means that the vast majority of the flaring that is happening in the Permian Basin is happening without the explicit knowledge of the RRC.”