Permian Shale Producers Warn of Natural Gas Takeaway Constraints

In 2019, producers across the Permian Basin flared and vented 293 Bcf of gas but flaring has declined as producers implement emissions reduction measures.

Liz Hampton, Reuters

U.S. oil and gas producers Diamondback Energy Inc and ConocoPhillips said on Dec. 7 the top U.S. shale field will face natural gas pipeline constraints as production grows and companies strive to reduce flaring.

While other U.S. oilfields are seeing production plateau, the nation's largest in the Permian Basin in west Texas and New Mexico is anticipated to continue to grow because of its low cost of output. The Permian's cost of production "is the lowest in the world right now," Tim Leach, a Conoco executive vice president, told the World Petroleum Congress in Houston.

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