Oil and gas producers in Texas are contributing to a positive long-term trend Texas as the rate of flaring in the state continues to fall.

As seen in the chart below, the most recent Railroad Commission production data shows that the percentage of natural gas flared compared to the natural gas produced from oil and gas wells in Texas dropped from a high of 2.29% in June 2019 to 0.65% in May 2021. During the same period, the volume of gas flared decreased by approximately 73%.

The average percentage of natural gas flared has remained below 2% statewide since October 2019, making Texas one of the lowest in flaring rates among all large producing states in the nation.

This means the vast majority of natural gas is being captured and used for beneficial purposes, which is a much-needed fuel for an electric generation; a basis for alternative fuels, LNG, CNG, and LPG; and used in a wide variety of products, such as plastics, synthetic fibers for advanced clothing, paints, fertilizers​, medicines, antifreeze, and more.

“The facts are clear. Texas is seeing significantly reduced flaring rates as a result of improved technologies, infrastructure and regulatory processes,” said RRC Chairman Christi Craddick. “Through hard work and collaboration, Texans are better off with more natural gas available for beneficial use. I am grateful for the efforts of Railroad Commission staff and the commitment from operators to reduce flaring rates and look forward to continued progress.”

“A clean environment and a thriving oil and gas industry are not mutually exclusive,” said Commissioner Wayne Christian. “Technological innovation has allowed operators to reduce waste, without impacting the tremendous impact oil and gas production has on our economy, state budget and our goal of energy independence.”

“The numbers released today are particularly notable given Texas’ outsized contributions to our nation’s energy needs,” said Commissioner Jim Wright. “According to EIA in 2020, Texas produced one-fourth of the nation’s natural gas, and annual production reached a high of more than 10 trillion cubic feet for the second year in a row. These trendlines reaffirm our commitment to utilizing our natural resources safely and efficiently.”

Since spring 2020, RRC has been working to improve its processes to reduce flaring in the state. Actions that the agency’s commissioners have taken, following periods of public input, include:

• On Nov. 4, approved a revamped Form R-32, Application for Exception to Statewide Rule 32, which provides specific guidance on when an exception to flare would be permissible, under which circumstances, and for how long. The new procedures with the form generally tighten up periods for administrative exceptions to flare gas, provides incentives for operators to use technologies that reduce flaring, require operators to provide specific justification for their need for an exception to flare, and provides additional data points to facilitate compliance audits.
• On Feb. 23, approved a revised Form PR, Monthly Production Report, which is being phased in and will be in full effect on Jan. 1. The revised form requires operators to report the amount of gas flared and the amount of gas vented as separate values on the monthly report instead of as a single value for an entire lease, putting RRC in better position to track compliance and correct potential violations.

In addition to the actions by commissioners, RRC launched an online system for requesting exceptions to Rule 32, resulting in better data collection and analysis.

Operators also have a right to request a hearing for requests for an exception to flare, which are ultimately decided upon by commissioners. For those cases, Hearings Division staff have more critically examined long-term hearing requests and have limited the outcomes of these requests.

Source: www.rrc.texas.gov

Hardware Matter is Resolved

BAYPORT TERMINAL PERMIT IS RENEWED AS IMPORTS CONTINUE TO POUR IN AND JUNETEENTH HOLIDAY RECOGNIZED

Truck gate operations have resumed Thursday afternoon at Barbours Cut and Bayport Terminals, following the resolution of computer hardware issues that closed both terminals to truck traffic for two and a half days. “Extended gate times are planned through the weekend – or as long as needed – until the business is caught up,” Port Houston Executive Director Roger Guenther said.

Guenther expressed regret to customers and partners, including truckers, and appreciation for their patience while resolving the issue. Guenther said, “We will take a strong look to find what caused the problem, and measures will be put in place to help prevent it from happening again.”

In more Port Houston news, the U.S. Army Corps of Engineers renewed the federal permit for Port Houston’s Bayport Terminal. This significant milestone was officially announced and applauded during the July meeting of the Port Commission of the Port of Houston Authority held last week.

This crucial permit allows Port Houston to continue its master plan for construction to build out the Bayport Terminal, which includes its current $200 million expansion program to complete Wharf 6, Container Yard 2, and other projects – part of Port Houston continuing efforts to remain ahead of accelerating demand.

Port Chairman Ric Campo also announced Port Houston was on track in the coming weeks to enter into a Project Partnership Agreement or PPA with the Army Corps, a key step in Project 11 widening construction program of the Houston Ship Channel.

Signatures and other final actions began processing this week, and a formal announcement is planned. Container volume recorded a 39% increase over last June, Executive Director Roger Guenther told the commission in his staff report. Port Houston has handled containers totaling more than 1.6 million twenty-foot equivalent units (TEU) at the midpoint of 2021, reflecting a 13% increase. Underscoring the constant increase in business, he notes “imports continue to pour into Houston as we continue to reach new record highs for gate moves and single vessel moves.”

Further highlighting the escalating momentum of the container business, Guenther shared that for the first time ever, Barbours Cut Terminal outpaced Bayport in loaded container gate moves (15,000 vs. 14,000) during the month of July, as a new record was also set at Barbours Cut with 5,687 single vessel moves working The ONE Matrix.

Emphasizing Port Houston’s sustainable operations efforts, Guenther noted that Bayport had just received five new hybrid-electric rubber-tired gantry cranes (RTGs), with the next delivery of an additional four RTGs expected in August. He added that that the beginning construction stages for Wharf 6 at Bayport can now be seen. The project began last month and will take nearly two years to complete.

The Port Commission and the Port Commission Citizens Advisory Council were also briefed on Port Houston’s draft Sustainability Action Plan, which includes twenty-seven opportunities for it to lead, partner or supports these initiatives in the region. Making history, the Port Commission unanimously endorsed the observance of Juneteenth as an annual holiday for Port Houston employees.

Chairman Campo praised U.S. Senator John Cornyn and U.S. Representative Sheila Jackson Lee for providing leadership in Congress as the primary sponsors of legislation making Juneteenth a federal holiday. Congresswoman Jackson Lee personally expressed her appreciation for this support of the Juneteenth holiday and underscored her continued support of the channel expansion project as well.

Chairman Campo emphasized that Juneteenth, “is not only important to Texans but is important to all Americans…we are grateful for it becoming law and receiving the recognition it has long deserved.”

The next regular Port Commission meeting will be held on September 28th in person at the Port Houston Executive Office Building located at 111 East Loop North, Houston, TX 77029.

Source: porthouston.com