North Dakota Natural Gas Flaring: $3.6 Million Daily

North Dakota natural gas flaring wastes around $3.6 million per day. That is over $100 million every month. Flaring is the burning of natural gas that is unused. As natural gas cannot be stored like oil, the excess is simply burned.

Many natural gas drilling sites are in remote locations. Limited amounts are transported for processing. However, without a network of pipelines, a lot of gas is burned as waste.

As reported by Reuters, the solution is not ideal. Ryan Salmon, who researched the waste, explains the financial impact:

“There’s a lot of shareholder value going up in flames due to flaring… Investors want companies to have a more aggressive reaction to flaring, and disclose clear steps to fix the problem.”

Pipelines can reduce North Dakota natural gas flaring. However, they are expensive to build and take time. Alliance Pipeline is currently working on a 79-mile pipeline that will connect with an existing interstate line. It will cost $141 million to complete.

Hess Corp is currently doubling the length of their existing line. That project is expected to cost around $325 million.

Blaise Energy has come up with a solution for excess natural gas. As reported by Grand Forks Herald, the excess gas is being converted into electricity.

Officials with Blaise Energy explain that new technology that allows them to provide electricity to the local grid. Natural gas is still flaring on their site. However, it has been reduced.

Mark Wald, owner of Blaise Energy, discusses his goals for the future:

“The goal is to get rid of that flare completely… Flared natural gas… is a waste of energy… we’re going to get that problem solved, but it takes a while.”

Wald agrees that pipelines are a good solution. However, he points out that new technology can offer other solutions. Wald explains that the electricity converted from natural gas could be used to replace generators and power equipment in rural areas.

As the North Dakota natural gas flaring continues to waste money, oil drillers are working toward exploring better solutions.

[Image via Flickr]