Key 2023 Takeaways

• The Permian Basin reached one of its lowest methane intensity levels this decade in 2023, at 0.49 metric tons per barrel of oil equivalent (MT/boe). Since 2011, Permian methane intensity has declined nearly 83 percent, even as total production increased 482 percent in the same time frame.
• Flaring intensity in the Permian Basin in 2023 was 65 percent lower than in 2015 – when flaring reached a decade high. 2023 saw a slight uptick in intensity compared to 2022 levels, due to a unique confluence of factors, including record oil and gas production, depressed Waha Hub prices, and takeaway capacity constraints, yet overall accomplishments in emission reductions remained.
• Preliminary reporting indicates that the increases in Permian Basin flaring intensity in 2023 were likely an anomaly, with estimates showing a reduction of approximately 14 percent in 2024.
• Texas's flaring intensity in 2023 declined 47 percent since its peak in 2018. Total production has increased nearly 25 percent in that same time frame, with 2023 being the second-highest oil and gas production year on record in the Lone Star State, behind 2024’s record numbers. 
• The United States reached record levels oil and natural gas production in 2023, increasing nearly 9 percent since 2022 while maintaining flaring intensity near its lowest levels since 2012 at 2 meters cubed per barrel of oil (m3/bbl).

2023 was another record-breaking production year for the United States, as oil and gas producers again delivered the affordable and reliable energy our country depends on. Like previous record-breaking years, producers did so while holding methane emissions and intensity near its lowest levels since 2012.

The increased production comes at a crucial time, as geopolitical conflicts and a rise in energy demand spur the need for affordable and reliable energy.

“These production records are beyond impressive and reflect how Texas continues to provide reliable domestic production for the nation,” said Texas Railroad Commission Executive Director, Wei Wang. “Production taxes collected from the oil and gas industry pay for our schools, highways and the state’s Rainy Day Fund.”

Key Terms

• Methane Intensity: The amount of methane emitted, as defined by carbon dioxide equivalents, for every barrel of oil equivalent of oil and gas produced.
• Flaring Intensity: The amount of gas flared for every barrel of oil equivalent of oil and gas produced.
• Why Intensity? Intensity is the leading industry standard used to calculate methane and flaring emissions relative to production output. The same methodology is used by key international organizations like the World Bank and the International Energy Agency to track and compare emission performance.

The Permian Basin Reaches Near-Record Low Methane Emission Levels Since 2011

In 2023, the Permian Basin reached its second-lowest methane intensity level at 0.49 MT/boe, a slight increase from 2022’s record low of 0.39 MT/boe.

Since 2011, Permian methane intensity has declined nearly 83 percent, even as total production increased 482 percent in the same time frame.

The significant drop in flaring confirms what advocates of the oil and gas industry have been saying for decades– American producers can responsibly and efficiently meet the nation’s energy demands while safeguarding the environment. The U.S. oil and natural gas industry continues to lead efforts to reduce emissions through innovation, collaboration, and more than $300 billion invested in technologies to mitigate greenhouse gas emissions over the past two decades. Collectively, the industry is driving quantifiable results in reducing emissions, while increasing production to meet growing demand at home and abroad. We must continue supporting the American oil and gas industry, ongoing investments in innovation, industry best practices being utilized by domestic operators and sensible energy policy.

Permian Basin operators had a slight uptick in methane intensity between 2022 and 2023 due to the same aforementioned factors, a 9.6 percent production increase in the region, depressed Waha Hub prices, and takeaway capacity constraints. Still, 2023’s methane intensity remains one of the region’s record lows since 2011.

Permian flaring intensity peaked in 2015 at 4.31 m3/bbl when production was 687,793,955 bbl. Important progress in the years since lowered flaring intensity 65 percent by 2023 while production increased 214 percent in the same time frame.

Preliminary reporting indicates that the increases in Permian Basin flaring intensity in 2023 were likely an anomaly, with estimates showing a reduction of approximately 14 percent in 2024. This downward trend aligns with ongoing commitments by operators to reduce environmental impact, as well as increased Permian pipeline takeaway capacity.

The Permian’s record levels of production in 2023, combined with the region’s overall reductions in methane and flaring intensity, mark important progress for the industry as the United States hit the second-highest record for oil and gas production that year, with the Permian providing roughly two-thirds of all U.S. natural gas production.

The Lone Star State Maintains Low Flaring Tradition

The state of Texas set new oil and natural gas production records in 2023, supplying 43 percent of oil and 27 percent of natural gas for the United States – these numbers were likely again surpassed in 2024. Despite this increased production, emission reductions continued. For example, flaring intensity in 2023 decreased 47 percent from 2018 levels, even as Texas’ production increased nearly 25 percent.

Bottlenecks across Texas’ pipeline network led to an uptick in flaring volumes as operators struggled to move record volumes of product through congested hubs. As Bloomberg reported:

“Crude oil pipelines connecting the busiest Texas oil fields to a critical export hub across the state are nearly out of space, threatening to cap US oil exports at a time when the world needs them more. Key pipelines that transport barrels produced in the Permian Basin to the port of Corpus Christi are more than 90 percent full, and companies that operate some of these lines say the congestion is likely to get worse.”

However, overall progress in maintaining low-intensity levels from the last five years was maintained. Additional takeaway capacity in the Texas Permian in September 2024 helped ease congestion and will support decreased flaring in the coming years.

“American oil and gas producers, especially those in Texas, have always been committed to meeting increasing energy demand responsibly. The most recent methane and flaring data prove that growing energy demand can be met while keeping emissions as low as possible,” Ed Longanecker, President at TIPRO (Texas Independent Producers & Royalty Owners Association) said.

“The increase in emissions from 2022 and 2023 point to an issue the industry has been advocating for years for – new and modern infrastructure, specifically pipelines,  is urgently needed to transport energy safely and efficiently and reduce flaring. The oil and gas industry will continue to prioritize innovation and digitization to drive emissions even lower, but a clear, predictable and permanent permitting process is needed to safeguard responsible energy development for decades to come.”

As the top oil and gas producing state in the Union, Texas’ flaring reductions play a critical role in the country’s overall emissions, safeguarding cleaner air not just for Texans, but the world. 

Top global producers like Russia and Iran had significantly higher flaring intensities than Texas in 2023. Russia’s flaring intensity was 3.5 times higher than Texas, while Iran topped out at 7 times greater than the Lone Star State.

The United States Continues To Have Greater Flaring Reductions Than Global Competitors

Of the top 20 countries by flared volumes, the United States has made the most progress over the last 10+ years in reducing its emissions even as it continues to set production records, according to World Bank data. The United States has successfully reduced its decade-high 2019 flaring intensity by 47 percent as of 2023, even as production increased 5.6 percent in the same period. 2023 also saw the second-lowest U.S. flaring intensity since 2012 at 2.0 m³/bbl, slightly higher than 2022’s record-low 1.8 m3/bbl.

Between 2022 and 2023, flaring intensity and flaring volumes in the United States increased 11 percent and 21 percent, respectively, as producers worked to meet growing energy demand at home and for allies abroad. Still, 2023 remained the second-lowest level of flaring intensity since 2012, despite record production. In fact, among top global producers like Iraq, Iran and Russia, the United States is the only country to maintain low flaring intensity even as production increased over the last decade.

The United States, Texas, and the Permian Basin have made substantial strides in reducing flaring and overall emissions, far outpacing other top oil and gas-producing nations around the globe. Flaring intensity in Russia was nearly 4 times greater than the United States in 2023, and Iran’s was 7.5 times greater, in 2023.

Similarly, flaring intensity in Russia in 2023 was 5 times greater than the Permian Basin while Iran’s flaring intensity was ten times greater.

American oil and gas producers, especially those in the Permian Basin and across Texas, are committed to meeting increasing energy demand responsibly. The most recent methane and flaring data demonstrate that growing energy demand can be met while minimizing environmental impacts. However, the increases in emissions from 2022 and 2023 provide further proof that new and modern infrastructure should be urgently considered to ensure energy can be transported safely, efficiently, and with limited emissions, for end use. Importantly, these projects are not built and put in service overnight, requiring a predictable permitting process for stable investment.

The oil and gas industry stands ready to continue innovating and advancing the technology and processes to meet current and future energy demand at home and for our allies and trade partners abroad.