Drilling Slump in North Dakota Allows Rapid Flaring Reduction

Abstract

Natural gas flared in the Bakken has abruptly declined this year, reaching 8% in April, a striking change from the days when more than one-third of the gas from the oil-rich formation was burned. “In 2014, flared volumes in the state reached 0.35 Bcf/D, equal to almost half of total volumes that were either flared or vented in the United States,” according to a report by the US Energy Information Administration (EIA). The percentage of gas flared in April was half of what it was at the end of last year, and the volume is the lowest since 2011, according to totals reported by the state. During the Bakken boom in 2014, nighttime pictures from space served as a sign of the times, showing the light from the many flares in the sparsely populated state that otherwise would look mostly dark. While lights are still visible, they are not as bright. The EIA reported flaring in the state “has declined sharply since 2014,” based on numbers from the North Dakota Industrial Commission’s Department of Mineral Resources. The volume of gas flared is down because more is flowing to market via the state’s expanded network of pipeline and processing facilities. The amount burned looks even smaller as a percentage because the total amount of gas produced has been rising in North Dakota, which set a record for output in March. The accelerated rate of decline was a bit of a surprise. Last fall, North Dakota regulators stretched out the timetable for a reduction in flaring to 10% of the total gas production by 2020, after the industry asked for more time to deal with issues slowing the expansion of pipelines and processing facilities. North Dakota officials are wary about declaring victory. “In the near term we expect to have a high level of gas capture in North Dakota,” said Justin J. Kringstad, director of the North Dakota Pipeline Authority, who closely follows the business. “But over the long term it is something we are continuing to look at.”