“Blood & Oil” is set in the North Dakota Bakken oil region, which experienced an oil boom between 2006 and 2012 that turned into a bust more recently with the dropping price of gas. In fact, we’re now flaring 20 times the national average of 1 percent.
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The oil industry is required to capture 85 percent of natural gas by January 1.
The industry sought an extension on the 15 percent benchmark until November 1, 2017, due to problems with federal permits, land access permission for pipelines, and delays in the development of gas processing plants.
The new restrictions, which require oil companies in North Dakota to capture at least 85% of the natural gas released from oil production, were supposed to take effect at the beginning of 2016. Companies must meet the goals to avoid production limits.
“We are not moving the goalposts”. The flaring rate was 18 percent in June and has been as high as 36 percent in September 2011.
The delay approved Thursday comes as North Dakota officials consider granting Bakken operators up to a year more to keep wells uncompleted in order to wait out the ongoing decline in oil prices.
Right now, the state reports 82% of natural gas is being captured for production.
The fall in individual income tax revenues highlights the toll the idled rigs are taking on oil field workers, with CNN Money noting the number of mining and logging jobs in the state have fallen by 3,700 (down 12 percent) since March.
“There’s a lot of states that wouldn’t think (10 percent) is all that great”, Gov. Jack Dalrymple said.
“We’re just hoping the Industrial Commission will stand firm”, said Wayde Schafer, a spokesman for the Sierra Club’s North Dakota chapter.
“If you want to put the stake in the ground at 91 percent in 2020, have at it. We will do our best to get there….”
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Commissioners also asked Department of Mineral Resources Director Lynn Helms to return next month with a proposed gas capture credit plan that would allow producers who exceed the goals to “bank” the excess gas for up to 90 days and use the credits if they slip below the benchmarks.
