Nat Gas News – January 16, 2020
The U.S. Natural Gas Boom Is On Its Last Legs
Oil Price reported: Weak natural gas prices amid abundant supply and a falling rig count across the United States will slow down U.S. natural gas production growth this year, and some basins will even see production declines, analysts say. Due to the shale revolution, natural gas production in the U.S. has been growing rapidly over the
past decade, and growth accelerated over the past two years. But now companies are struggling with negative cash flows as prices stay low, and investors are not rewarding production growth if they don’t have returns. The natural gas glut created from the continuously rising production amid insufficient pipeline takeaway capacity has been recently aggravated by the gushing associated gas in the oil wells in the Permian, where pipeline capacity is not nearly enough to accommodate additional natural gas volumes. Gas flaring has hit record highs as producers are unable to find any useful and reasonably cost-efficient application for that gas. For more on this story visit oilprice.com or click https://bit.ly/2FUPR31
ExxonMobil flares 1.2 billion cubic feet of natural gas in start-up
Demerara Waves reports: ExxonMobil has so far flared more than 1.2 billion cubic feet of natural gas since beginning commercial oil production on December 20, 2019 offshore Guyana, something at which this South American country’s environmental watchdog initially expressed surprise. The Environmental Protection Agency
(EPA) Executive Director, Dr. Vincent Adams, asked to confirm what oil industry stakeholders have told News-Talk Radio Guyana 103.1 FM/Demerara Waves Online News, said usually there should be no flaring of gas except in cases of emergency or start-up operations. “It’s necessary right now for testing out the equipment for start-up even though we were not expecting it to be for this long a period but it’s something that we now have knowledge of that before you start injecting, the equipment has to be working under the conditions that presently exist to ensure they can operate safely,” Adams said. For more on this story visit demerarawaves.com or click https://bit.ly/3a9IXEW
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