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To: thackney

I’ve often wondered (coming from an oil producing area) why the gas produced by pumping oil is not collected rather than burned off. Anyone know?


21 posted on 04/03/2015 5:35:11 AM PDT by traderrob6
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To: traderrob6

Cost, always cost.

If they can make money piping the gas to a gathering system it is done quickly.

If the gas produced is too little for cost of installing the gathering piping, it is delayed as long as possible.

This becomes a function of the amount of gas produced, amount of existing gas gathering infrastructure in the area, as well as gas prices.

Many states require the gas to be eventually tied into production, but the amount of time and amount of gas flared varies by area.

I like the Alaska rules, producers pay royalties on gas not compressed back into the reservoir. If the gas is used or flared, the royalties are paid to the state the same as if it was sent down the a pipeline. Either return the gas to the field to help maintain pressure or pay for the gas.


22 posted on 04/03/2015 5:40:15 AM PDT by thackney (life is fragile, handle with prayer)
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