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Kodiak Oil & Gas Corp. Message Board

  • uwin2day4gd uwin2day4gd Feb 24, 2013 1:06 PM Flag

    Flared gas is the next EPA target

    Since the drillers seem to want to pump the oil and flare the gas the next EPA move will be to fine them for not hooking up to pump out that gas.The fines will be substantial since it seems that the flaring is polluting.Some flaring will probably be permitted during startup but the rest will cost money.Good for total natural gas supplies,bad for drillers.

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    • Funny post....guess you missed the news from Jan. 2013 in ND.
      "The North Dakota Pipeline Authority hosted a webinar Dec. 18 that presented various alternatives to flaring natural gas at well sites throughout the Bakken region as part of an increased effort to encourage producers to begin utilizing methods that reduce flaring.

      The state’s historical high for flaring was 36 percent in September 2011. About a third of all gas produced at Bakken wells is still being flared, despite the recent addition of new gas gathering lines and processing plants. Lynn Helms, director of the North Dakota Department of Mineral Resources, said during the webinar that 796 million cubic feet per day of gas was produced in October, of which about 240 million cubic feet per day was flared.

      Helms said the state has set a target to reduce flaring in the Bakken to below 10 percent of all gas produced, but because the amount of gas being produced is increasing, by the time the reduction is achieved there will still be more gas flared than at the current time. “So short term and long term, there’s tremendous opportunity for the utilization of flared gas,” he said.

      Some of the opportunities to utilize Bakken gas include fertilizer production, conversion to methanol, or for use as a fuel to displace diesel required for drilling rigs, hydraulic fracturing pumps and other equipment. A number of presenters offered their solutions to efficiently capture and utilize gas produced at Bakken wells, several of whom touted their technologies’ mobility, a valuable characteristic for producers who anticipate moving from well to well.

      Blaise Energy, a Bismarck, N.D.-based company, is the first company in North America to generate renewable energy credits from recycling flared gas, according to Mark Wald, president. His company has developed a method to convert unprocessed wellhead gas into electricity which can be used to power the site or can be sold back to the grid. The company is also partnered with the University of North Dakota’s Institute for Energy Studies to develop a polygeneration facility that could convert residue gas to methanol.

      Jeremy Dockter of Expansion Energy, said one of the uses for the small-scale liquefied natural gas (LNG) technology developed by his company could be to replace diesel fuel needs at a well site. The company recently signed a technology license agreement with Dresser-Rand, which plans to introduce the mobile LNG production units to the market in the third quarter of 2013. Dockter said oil producers have shown a high level of interest in this type of technology and he encouraged interested producers to get their order for units in the queue as soon as possible.

      Helms said that while the Industrial Commission has not rigorously enforced current flaring limitations due to the large price differential between oil and gas, as more technologies are introduced that enable producers to utilize gas, the commission is “eager” to more actively enforce its policies. He said he also anticipates legislation to be introduced this session that will “change the landscape” in terms of tax exemptions, liability concerns and the reporting of utilized natural gas to the commission. “This will be a big piece of the puzzle of North Dakota’s flare gas,” he said"

 
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