EMNRD’s Oil Conservation Division Partners with EOG Resources on Flaring Reduction Pilot Test

Jun 17, 2020 9:09 AM

Susan Torres, State of New Mexico Energy, Minerals and Natural Resources Department | June 17, 2020

Today the Energy, Minerals, and Natural Resources Department’s (EMNRD) Oil Conservation Division (OCD) announces successful initial results of a pilot project with EOG Resources (EOG) aimed at reducing flaring in oil and gas operations. This project is an example of how a public-private partnership can apply innovative technology to solve complex problems.

A significant source of flaring from production operations is due to temporary shutdowns of third-party pipelines. EOG approached the OCD with an innovative solution to prevent flaring by looping gas back into existing wells during a pipeline outage – rather than flaring – and then reintroducing the gas into the system when pipeline operations are restored. This is the first time the process has been attempted in New Mexico and the OCD was pleased to partner with EOG in testing the effectiveness of the project. Initial results were successful and show this gas capture solution has the potential to both reduce flaring and return a majority of the captured gas from the well back to production.

“The Oil Conservation Division is always looking for innovative solutions to problems,” said Oil Conservation Division Director Adrienne Sandoval. “EOG’s successful trial of this pilot project could provide a creative and effective solution to reduce flaring in the oil and gas industry, which is a top priority for this administration.”

The OCD hopes the pilot program continues to prove successful and looks forward to expanding this process in coordination with EOG and other companies to reduce flaring across the industry.

“EOG is committed to reducing greenhouse gas emissions from our oilfield operations, and we
are grateful for the opportunity to collaborate with the state to develop technologically innovative projects that both support economic growth and environmental stewardship,” said Billy Helms, Chief Operating Officer of EOG Resources. “We commend the administration’s efforts, and we look forward to proactively working together on future projects.”

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