Flaring Incidents Increase in Permian Basin Due to Texas Heatwave
Extreme Heatwaves Lead to Surge in Flaring Incidents
Extreme heatwaves in Texas have caused a significant rise of 22% in flaring incidents within the Permian shale basin over the past 12 months, according to analytics firm Enverus. In a note published on Thursday, Enverus stated that satellite data from the largest U.S. shale basin revealed near three-year peak levels of flaring in July, coinciding with the extreme heat gripping Texas. The scorching temperatures prompted multiple power conservation calls and record-breaking electricity demand during the summer months.
Impact on the Midland Basin
During the peak months of May to July, the Midland basin experienced flaring rates 1.7 times higher than the Delaware basin. However, not all operators increased their flaring activities, as certain gas gathering systems exhibited significantly higher rates than others, as mentioned in the note.
Challenges for the Upstream Sector
Enverus warned that the excessive flaring at wellheads poses a significant obstacle for the upstream sector to achieve its environmental, social, and governance (ESG) goals in the short term. The note added that flaring in the top U.S. shale basin is expected to increase further next year, according to a report released by Enverus in May.
In conclusion, the rising flaring incidents in the Permian basin, fueled by extreme Texas heatwaves, are causing significant challenges for the oil and gas industry. It is crucial for operators to find sustainable solutions to minimize flaring and work towards meeting their ESG goals.