BP Sets Onshore Flaring Deadline
BP (NYSE: BP) reported Sunday that it aims to achieve zero routine flaring in its U.S. onshore operations by 2025.
The company contends that a new electrified central oil, gas, and water handling facility near Orla, Texas, will help it to make strides toward the flaring goal. The “Grand Slam” facility integrates a sophisticated separation and compression system that enables otherwise flared gas to be recovered and commercialized, BP America noted in a written statement on its website. It reduces operational emissions in part by replacing gas-driven equipment, compressors, and generators, the company added.
BP, which in 2018 acquired Eagle Ford, Haynesville, and Permian assets from BHP (NYSE: BHP) for $10.5 billion, pointed out that it has sharply cut its flaring intensity since adding the assets to its holdings. For instance, it pointed out that its flaring in the Permian Basin – approximately 16% in the fourth quarter of 2019 – is now below 2% and continues to decrease.
“What we are doing with our Permian assets is a clear example of our strategy in action,” remarked Kim Krieger, operations vice president with BPX Energy, BP’s onshore U.S. oil and gas unit. “Electrification of the field has been a gamechanger. We are cutting emissions while significantly increasing the reliability of our field operations enabling a 20% uplift in production. It’s exciting to see our emissions decrease and our incremental operating cash flow increase.”
BP America projects that more than three-quarters of its Permian operated wells will be electrified by the end of this year. It expects that figure to exceed 95% by 2023.
“We see a future where our Permian production is a highly commercial and low carbon energy resource that uses a combination of technologies – such as continuous methane monitoring, electrification, and block chain applications – to support and accelerate the energy transition,” commented BP America Chairman Dave Lawler.
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