North Dakota could extend gas capture targets
North Dakota has been phasing in regulations to cut flaring of gas, beginning in 2014. The goal is to cut flaring to 15pc by the first quarter of 2016 and to 5-10pc by the end of 2020. The plan also limits crude production for producers who do not meet requirements to capture natural gas.
The state's Industrial Commission will consider an extension to these deadlines at a meeting today at 2pm ET. More details will be released after the meeting.
North Dakota is home to the Bakken formation, the third most productive US shale field. Crude production has grown sharply there from about 150,000 b/d in 2008 to more than 1.2mn b/d, creating a major supply basin which has changed US market dynamics. The crude production produces large amounts of associated gas.
In July, about 18pc of the gas was flared, as the state continues to grapple with a lack of takeaway capacity, according to the most recent state data.
Department of Mineral Resources director Lynn Helms said last week that reaching the goal of capturing 90-95pc of natural gas by 2020 will be difficult because infrastructure projects needed to reach that goal are not cost-effective amid the collapse in NGL prices.
North Dakota is also considering allowing drillers to let uncompleted wells sit idle for an extra year in "temporarily abandoned" status because of the low price environment.
North Dakota's crude and natural gas output held steady in July, despite falling rig counts.
Crude output in July averaged 1.2mn b/d, down by just 9,400 b/d from the previous month. Natural gas production increased by less than 1pc to 1.66 Bcf/d (47mn m?/d), an all-time high.
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