general question/gas being burned what is gas company doing?

On a nearby well pad ( 1/2 mile or so ) from me they have drilled one well, pulled out and moved somewhere else. 

They now have some equipment there that is very loud, sounds like a jet/airport.  So drove and took a look.  Its some device burning off gas that makes the sound. 

Just curious, whats the purpose of this, what is the gas company trying to do when they do this.  Have not seen it before, sure lots of you have and have more experience so maybe you could clue me in.

Thanks

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Jim ShoosPermalink Reply by Jim Shoos on March 4, 2012 at 6:32am

A lot of the explanation depends upon the operator and some of the explanation depends upon the maturity of a producing area.  If you have a well that is generally devoid of any offset production with a "history", then prior to making a decision to spend what might be several million dollars to construct a pipeline an operator will flow/flare a well to see how the production holds up and how the flowing casing pressures decline.  To use an oilfield term... some wells fart and die.  No producer likes to see potential revenues disappear into the atmosphere and they generally only vent/flare for no longer than is necessary to ensure that they truly have something worthy of spending millions of dollars to connect to a pipeline.

Permalink Reply by Dave on March 4, 2012 at 10:46am

pipelines are at capacity future pricing are @ $1.95 and falling

Permalink Reply by mlb on March 4, 2012 at 11:52am

Any idea what companies pay to run pipelines through your property on avg or what is fair?  If the well is on my land, do I get paid the same for them to run it through my place and on to the next place etc.  I have about 1500ft from well pad to next property.

Permalink Reply by Finnbear on March 4, 2012 at 4:28pm

Some reading on the subject.

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Permalink Reply by craig on March 4, 2012 at 12:23pm

They also vent/flare to keep the well ready for production, someday in the future. They don't like to leave a fracked well sit idle, ie non-producing.  It seems as though they believe the frack job loses it's effect if it is left sitting and not producing over time. Nothing like waiting for the infrastructure to be built, heh?  That's what was explained to me anyhow.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on March 4, 2012 at 6:35pm

I guess it is best to find out ....

just listen:

http://www.myspace.com/video/interpro63/shooting-flames-venting-of-...

how much of that bonus money that you didn't get .....is up in the air?  who knew?

here's an explanation of the process at this link>and what it does to the environment.

http://www.marcellus-shale.us/gas_flares.htm

 

least you forget the other items on the agenda that were not really understood properly by most of the Lessors here....

http://www.youtube.com/watch?v=QefLQKLb5co

do you know where you might park your tractor  anymore?

 

now you see why they knew what they were doing before they arrived with the land leases?   if you all knew this...you couldn't have even shook their hand unless they were speaking 10k 23% and up...and without a market enhancement clause.  

The residents of Pa. and other states of the Marcellus were basically invaded by an unknown species...they needed to bring a video to show the residents of what their planet looks like or will look like as they do their work.    Oh, it's needful work...but much of it is just to hold the land under a lease for some and many are not real content with the trade off they have made thus far.   And hopefully some will benefit and make it worthwhile...but clearly it would have been far better for all to benefit in the trade off of what they are now doing to such a pristine and comfortable environment.

 

Permalink Reply by craig on March 4, 2012 at 7:02pm

Well, I knew about how much gas could be flared off. I also know that they are not using containment ponds at all around here. They only use freshwater impoundment ponds.  CHK's flaring must be some sort of green flaring, they are processing the stream before it gets burned. Some dated info there from what i saw it was made in 2008, things have changed dramatically in some good ways in the past 3 yrs.

As far as how much of your bonus is being burned up, I'd say with the prices right now, not very much. Better to keep the well active by flaring every so often, than let production suffer when it does come time to hook up and sell. 

It sure would be nice if they could flare a well without burning anything, but then it wouldn't be called flaring!

Permalink Reply by Elnathan Cory on March 6, 2012 at 2:38am

They are creating a beautiful glow in the sky. One that means $ and energy independence for the USA!

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