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Archive for the ‘flaring and venting’ Category

Minimizing flaring and venting is important from both environmental and resource conservation standpoints. Flaring and venting volumes are also good indicators of how well production systems are designed, managed, and maintained.

The best performance indicators are the percentages of produced gas that are flared and vented both for oil-well gas (OWG, also known as associated or casinghead gas) and gas-well gas (GWG or non-associated gas).

Updated flaring and venting volumes for the Gulf of America have been compiled using monthly data submitted to the Office of Natural Resources Revenue (ONRR). This is the best data source because reporting is mandatory and strictly enforced, and flaring and venting are accounted for separately.

In assessing performance trends, it’s important to segment venting and flaring volumes for both OWG and GWG production. Venting produced gas (mostly methane) is a more significant environmental concern from both air quality and greenhouse gas (GHG) perspectives.

Flaring and venting data for 2019-2024 are summarized in the table below. All volumes are in millions of cubic feet (MMCF).

Notes and comments:

  • The more disappointing 2024 numbers are entered in red. The blue numbers, all related to OWG venting, are encouraging.
  • The % of all produced gas that was flared or vented in 2024 (1.3%) was the highest in the past 10 years (see the chart below the table). Until 2018, annual flaring/venting rates of <1% of production were commonly achieved. This should be the target going forward.
  • OWG flared increased significantly from 2023 levels, both in terms of the volume (7.26 billion cu ft) and the % of OWG produced (1.22%).
  • Production curtailments and restarts related to Tropical Storms Francine and Helene may have contributed significantly to the 2024 flaring increase. ONRR’s monthly reports show a near doubling of the average monthly flaring volume in Sept., when Francine and Helene shut-in 42% and 29% of oil production respectively. However, even if the Sept. flaring surge is normalized to the monthly average for the other 11 months, the total 2024 flaring still exceeds the 2023 volume by 361 MMCF.
  • The % of GWG vented in 2024 was the highest in the 6 year period and double the 2019, 2020, 2021 rates. Inefficiencies associated with the dramatic decline in GWG production, down 41.5% from 2023, may be a contributing factor.
  • The continued decline in OWG venting to only 0.16% in 2024 is encouraging. The decline should be sustainable given that most OWG is now produced at modern deepwater platforms equipped with efficient flare stacks.
  • Given the significance of these data, from safety, conservation, and environmental perspectives, a more comprehensive analysis by the offshore industry and regulators should be a priority.
  • Related posts
201920202021202220232024
OWG flared772773855919698763427260
OWG vented25781984140516381230965
OWG produced670,699582,254582,824581,235598,005595,600
% OWG flared1.151.271.021.201.061.22
% OWG vented0.380.340.240.280.210.16
GWG flared405432311213212232
GWG vented958578548722468465
GWG produced364,082224,808209,558203,342152,40089,167
%GWG flared0.110.190.150.100.140.26
%GWG vented0.260.260.260.360.310.52
total flared and vented11668102338183955982528922
total gas production1,034,782807,062792,382784,577750,405684,758
% flared or vented1.131.271.031.221.101.30
total vented353624161953236016981430
% vented0.340.300.250.300.220.21
total flared813278176230720065547492
% flared0.790.970.790.920.871.09
OWG=oil well gas; GWG=gas well gas; all volumes are in MMCFG

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As the chart indicates, the % of flared or vented Gulf of America gas production increased over the past 10 years. This trend is presumably due, at least in part, to the sharp increase in the % of gas production from oil wells (associated gas), which have a higher flaring rate. In 2024, 87% of Gulf gas production was from oil wells.

Flaring/venting summary tables and comments, updated through 2024, will be posted later in the week.

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Whistle Hill Beef

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Note: I have attached a PDF for those who want to download the charts and table. I have also added a “flaring and venting” category for easy access to these posts.

Minimizing flaring and venting is important from both environmental and resource conservation standpoints. Flaring and venting volumes are also good indicators of how well production systems are designed, managed, and maintained.

The best performance indicators are the percentages of produced gas that are flared and vented both for oil-well gas (OWG, also known as associated gas or casinghead gas) and gas-well gas (GWG or non-associated gas).

I compile monthly flaring and venting volumes for the Gulf of Mexico using data submitted to the Office of Natural Resources Revenue (ONRR). Reporting these data is mandatory and strictly enforced. Violators are subject to civil and criminal penalties.

In assessing performance trends, it’s important to segment venting and flaring volumes for both OWG and GWG production. Venting produced gas (mostly methane) is a more significant environmental concern from both air quality and greenhouse gas (GHG) perspectives. Reductions in methane emissions are a priority for regulators and leading operators.

Flaring and venting data for 2019-2023 are summarized in the charts and table below. All volumes are in millions of cubic feet (MMCF). For the last chart (% of total gas production vented), I added ONRR data for 2015-2018 to provide a longer term perspective on overall venting performance.

Observations:

  • OWG venting has declined significantly both in terms of the total volume and % flared. Most OWG is now produced at modern deepwater platforms equipped with efficient flare stacks. Venting from these facilities is minimal. A performance target of <0.2% for OWG venting should therefore be achievable.
  • GWG venting volumes have declined sharply. However, given the parallel decline in GWG production, the % of GWG vented has actually increased. Most gas wells are on older shelf platforms where flare booms cannot be safely and economically added. Nonetheless, it’s disappointing that the % of GWG vented increased to > 0.3% in both 2022 and 2023.
  • OWG flaring has remained relatively constant both in terms of the volume and % flared. Given that most OWG is produced at deepwater facilities, reduction of the flaring % to <1.0 should be achievable.
  • The % of the total gas flared or vented has remained relatively constant at >1.0%. Again, a target of <1.0% should be achievable.
  • In the table, the figures in blue are particularly encouraging and the figures in red are the most disappointing.
  • Overall, the numbers are good, but continuous improvement should be the objective. Reductions in GWG venting and OWG flaring should be prioritized.
  • As previously discussed, flaring/venting performance could be better assessed if information on large flaring/venting episodes was made publicly available. Explanations are needed for spikes in monthly ONRR flaring/venting volumes. Are these spikes associated with production startups, tropical storm restarts, major compressor issues, administrative/accounting corrections, or something else?
20192020202120222023
OWG flared77277385591969876342
OWG vented25781984140516381230
OWG produced670,699582,254582,824581,235598,005
% OWG flared1.151.271.021.201.06
% OWG vented0.380.340.240.280.21
GWG flared405432311213212
GWG vented958578548722468
GWG produced364,082224,808209,558203,342152,400
%GWG flared0.110.190.150.100.14
%GWG vented0.260.260.260.360.31
total flared and vented1166810233818395598252
total gas production1,034,782807,062792,382784,577750,405
% flared or vented1.131.271.031.221.10
total vented35362416195323601698
% vented0.340.300.250.300.22
total flared81327817623072006554
% flared0.790.970.790.920.87

OWG=oil well gas; GWG=gas well gas; all volumes are in MMCF

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Regardless of one’s opinion about the causes of climate change, minimizing methane emissions makes good safety, conservation, and environmental sense. The emerging international consensus on methane emission reductions thus merits broad industry and governmental support.

Because of the resource conservation mandate in the OCS Lands Act, minimizing the waste of natural gas has been a point of emphasis in the US offshore program for 50+ years. If you couldn’t utilize or market the natural gas, your project wouldn’t be approved. This requirement delayed the entry of some floating production systems into the Gulf of Mexico, but the pipeline network ultimately expanded to support deepwater development with floating units. Those associated with the offshore program are rightfully proud of their success in prohibiting the waste of gas and minimizing flaring and venting.

Despite the historical commitment to restricting flaring and venting, the data suggest that further improvement may be needed. The concerns listed below are based on the compilation and review of flaring and venting data that operators are required to report to ONRR.

  • The % of US OCS gas produced that is flared or vented is trending upward (first chart below).
  • Both the gas flaring and venting volumes were higher in 2022 (vs. 2021) despite lower gas production.
  • 2022 oil well gas (OWG) flaring volume increased by 18% vs. 2022 despite nearly identical total oil production
  • More regulator/industry transparency on flaring episodes is needed, particularly in light of the PNAS paper and the June 2022 Inspector General Report.
  • In particular, there should be a process for explaining large spikes in monthly flaring and venting volumes. Were these spikes associated with production startups, major compressor issues, administrative corrections, or other factors?
  • Venting, which is a more significant environmental concern than flaring, increased by 407 million cu ft (21%) in 2023 vs. 2022. Although the overall venting trend is still favorable (second chart), the 2022 jump should be explained.
  • The previously noted inconsistencies in flaring data sets remain a concern.
  • The fact that more gas-well gas (GWG) is being vented then flared implies that most such venting is on older shelf platforms (where there are more gas wells).
  • As summarized in the third chart below, deepwater facility methane emissions are consistent with the reported inventories, but shelf emissions in State and Federal waters differ significantly.
  • Regulating venting from older shelf platforms is difficult. About 15 years ago, the Federal government (MMS) considered requiring that older production platforms be retrofitted with flare booms, but safety, space limitations, and cost considerations precluded such a regulation. Instead, additional flaring/venting limits, and measurement and reporting requirements were imposed. What is next for these facilities?
  • Compiling and posting flaring and venting data should be a priority for BOEM/BSEE.
vented oil-well gas (VOWG) and vented gas-well gas (VGWG) vs. time
Total CH4 emissions for the GOM from inventories and observations for federal waters (Left) and state waters (Right). Observationally informed emissions are shown for the resampling of absolute flux rates (resampling approach A), with a mean and 95% confidence interval. The inventory estimates represent values adjusted for the year 2021. PNAS, 2023

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World Bank flaring data have some limitations as discussed in a previous BOE post. However, they provide an objective means of estimating and comparing flaring volumes worldwide, and therefore merit close attention.

The latest World Bank data tell us that significant gas flaring issues persist. Worldwide, 138,549 million m3 of gas were flared in 2022. This equates to a massive 4 tcf, the equivalent of the reserves in a major gas field and more than 5 times the total gas production in the Gulf of Mexico in 2022.

The top ten “flarers” are listed below. Each of these fields flared from 19 to 42 bcf. For comparison, the top ten GoM gas producers in 2022 produced 10 to 57 bcf, so single fields are flaring more than GoM companies are producing in total. Assuming for discussion purposes a gas-oil ratio of 1000 cu ft/bbl, all of the gas associated with 19 million to 42 million barrels of oil production was wasted from each field.

Posted below are the World Bank’s flaring intensity data (m3 of gas flared per bbl of oil produced) for the 10 countries with the highest flaring volumes. Venezuela’s flaring intensity rose to 44.6 m3/bbl in 2020, before declining moderately the following 2 years. 44.6 m3/bbl equates to 1575 cu ft/bbl. This gas flaring to oil production ratio implies that a very high percentage of Venezuela’s associated gas production was flared.

Here in North America, we have flaring issues of our own. Mexico’s Cactus Field is a top ten flarer (first table above) with 534.5 million m3 flared in 2022. The World Bank also lists 6 Permian Basin fields with >50 million m3 of gas flared in 2022.

Zeroing in on the US/Canada offshore sectors, fields with >1 million m3 of gas flared (2022) are listed below. Four of the top 7 are offshore Alaska and Newfoundland where the gas cannot currently be marketed and reinjection, field use, and flaring are the only options. Can production from these fields be better managed to reduce flaring volumes?

fieldoperatorm3 (millions)f3 (millions)
White Rose (Nfld)Cenovus41.691472
Hibernia (Nfld)HMDC40.991448
ShenziBHP31.341107
Northstar (AK)Hilcorp11.23397
ConstitutionOxy10.76380
PompanoTalos10.54372
Endicott (AK)Hilcorp10.07356
UrsaShell8.19289
MarmalardMurphy6.62234
LuciusOxy3.09109
MarlinOxy3.08109
MarsShell2.278
HolsteinOxy1.4852

The extraordinary 1.1 bcf of gas that was flared at the Shenzi field may help explain the large (1 bcf) increase in oil well gas flaring in the Gulf of Mexico in 2022. Based on the World Bank data and ONRR data for the GoM, Shenzi accounted for 16% of GoM oil-well gas flaring in 2022. As noted in that post, more regulator/industry transparency on lease and field specific flaring is needed. ONRR’s posting of flaring and venting data is a positive step, but it doesn’t include lease specific data and doesn’t explain major flaring episodes.

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According to EIA data for 2001-2021, Gulf of Mexico flaring and venting volumes peaked in 2001 at 21.6 bcf, 2.25 times the volume flared or vented in 2022 (ONRR data for 2022). However, gas production in 2001 was 5.05 tcf, 6.4 times higher than in 2022. The % of the produced gas that was flared or vented in 2001 was thus 0.4%, less than 1/3 the 2022 rate of 1.22%.

Points to consider:

left axis: gas produced in millions of cubic feet; right axis: % flared or vented

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From ONRR OGOR B data:

20212022
OWG flared59196987
OWG vented14051638
GWG flared311213
GWG vented548722
total flared and vented81839559
total gas prodution791,983784,238
% flared or vented1.031.22
OWG=oil well gas; GWG=gas well gas; all volumes are in MMCF

Observations:

  • Of the 784 bcf produced, 9.6 bcf (1.2%) were either vented or flared (vs. 1.03% in 2021). With the exception of 2020 (1.3%), this is the highest % of gas flared/vented from 2015-2022.
  • The % of gas produced that is flared or vented is trending upward (first chart below).
  • Both the gas flaring and venting volumes were higher in 2022 (vs. 2021) despite lower gas production.
  • Assuming oil-well gas (OWG) production of 600 bcf (final 2022 volume not yet available), approximately 1.4% (8.6/600) of the OWG was flared or vented.
  • 2022 OWG flaring volume increased by 18% vs. 2022 despite nearly identical total oil production
  • A very large increase in OWG flaring in December skewed the 2022 data (921 million cu ft vs 522 million in November, see 2nd chart below). OWG vented and gas-well gas (GWG) vented also spiked in December (third chart). Were these spikes associated with production startups, major compressor issues, administrative/accounting corrections, or other issues?
  • Although total venting increased by 407 million cu ft (21%) in 2023 vs. 2022, the overall venting trend is still favorable (last chart).
  • The previously noted inconsistencies in flaring data sets remain a concern.
  • Kudos to ONRR for posting the flaring/venting data.
  • More regulator/industry transparency on flaring episodes is needed, particularly in light of the PNAS paper and the June 2022 Inspector General Report.

related:

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This misleading headline was featured in Reuters’ “Power Up” newsletter (26 Jan 2023):

An objective flaring assessment would have also considered the volume of oil and gas produced. The World Bank uses flaring intensity (m3 flared per bbl of oil produced) to normalize their flaring data and provide perspective. The chart below is derived from World Bank flaring intensity data and Gulf of Mexico data from mandatory flaring and venting reports for the same year (2021). These normalized data sharply contradict the Reuters message.

Reuters might also have noted (World Bank table below) that the US flaring intensity score declined by 46% between 2012 and 2021. Each of the other “top flaring” countries had flaring intensity increases during that period.

World Bank

Finally, while I applaud the World Bank’s efforts to monitor worldwide flaring, some issues with their methodology were identified in a prior BOE post.

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Using the World Bank’s worldwide flaring data and ONRR flaring and venting data for the GoM, I compared GoM flaring intensity for 2021 with that of the World Bank’s top ten flaring nations. This is just one example of why US offshore production is a preferred and vital component of our energy mix.

Further discussion: Kudos to the World Bank for their use of satellite data to estimate flaring volumes worldwide. Their primary performance indicator is flaring intensity (volume flared per bbl of oil produced). Absent better worldwide reporting regimes, satellite data are essential. However, there are issues with the World Bank’s system that merit further consideration:

  • Satellites miss some flares and vented gas (a more significant GHG concern) is not detected
  • A prior review of Gulf of Mexico data indicated that the World Bank flaring estimates are low.
  • The flaring intensity indicator penalizes higher gas-oil ratio (GOR) wells. Production upsets of the same duration yield higher flaring intensity scores at higher GOR facilities.
  • Associated gas is an environmentally favorable energy source that should not be discouraged. Most Gulf of Mexico gas production is now from oil wells. Efficient collection and utilization is the key.
  • There will always be some production upsets that result in flaring. The objective should be to minimize the % of oil-well and gas-well gas that is flared, irrespective of the amount of oil production. See the recent GoM summary data posted here and here.

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