Here is my elementary understanding:
Current gas gathering capacity is constrained by:
- shale technology causing production to increase faster than expected;
- wells characterized by high initial oil (i.e. valuable) production, followed by steep declines;
- gathering pipe build-outs hindered by weather, easement and ROW negotiation, required federal approvals, setback requirements; and
- shortage of processing plants.
Capture, the inverse of “waste”, is increasing slowly. For example,the Bakken is 75% now, may increase to 85% in two years and 90% to 95% in six.
Meanwhile, oil and liquids are too valuable to defer production.
So, the article overstates the potential price impact of reduced flaring.
Your understanding is far better than mine. I’ll quit commenting on this thread as I am simply not knowledgable enough to do so. Hope you had a great weekend.