A trio of major oil and gas producers are testing a new-to-New Mexico process to keep natural gas in the ground when it can’t be transported, sold or otherwise shipped through a pipeline. Instead of flaring or venting natural gas or completely shutting down wells when a midstream pipeline operator has an issue, the three producers — EOG Resources, Inc., Occidental Petroleum Corp. and Chevron Corp. — can now re-route backed-up gas into closed-loop gas capture systems, or CLGC, where it is re-injected into an active oil well. It then can be taken out later when a pipeline again has enough capacity.
The New Mexico Oil Conservation Division regulates the state’s oil and gas field operations and issued the orders allowing the state’s pilot CLGC wells. Dylan Fuge, the division’s director, said he expects the process will help reduce venting and flaring. “Overall, CLGC systems result in less waste due to an increase [in] an operator’s gas capture,” he said. Producers want to capture this gas rather than flare it because they can sell it later. Plus, Fuge said, flaring the captured gas would not make sense given the cost and effort to set up the wells.
