A recent Energy Information Administration (EIA) report noted the percent of natural gas production that was vented or flared in the U.S. decreased from 1.3% in 2018 and 2019 to approximately 0.5% in 2023, even as natural gas production increased to record levels. The EIA estimates this will be the lowest rate of venting and flaring recorded in the U.S. in the past 18 years. In Texas, natural gas operators performed well, substantially reducing the percentage of natural gas volumes vented or flared from 2.6% in 2018 to an estimated 0.5% in 2023, resulting in an over 99% utilization of all gas produced.

Flaring, a necessary safety process in the production of oil and gas, occurs most commonly in areas where natural gas production grows faster than processing and pipeline capacity. According to Texas Independent Producers & Royalty Owners Association (TIPRO) President Ed Longanecker, Texas operators are in a bind as “insufficient pipeline capacity forces producers to practically give away this valuable commodity.” Longanecker explained that building new pipelines, like the Matterhorn Express Pipeline, that is scheduled to come online this year, “will not only provide necessary takeaway capacity, [but] will also supply energy to end-users, contribute to local and state tax revenues and create well-paying jobs.”

Moreover, Texans are demanding more energy. ERCOT, Texas’ grid operator, projected demand for electricity could nearly double by 2030 amid the rise of data centers, an increase in the state’s populations and the electrification of major industries like oil and gas production. More than a third of the forecasted growth comes from oil and gas operators in the Permian Basin that are electrifying operations as part of their effort to reduce emissions.

The buildout of additional pipeline infrastructure is critical to enabling natural gas operators to meet the growth in energy demand while continuing to reduce emissions.

Production v. Flaring Patterns

According to data from the Railroad Commission of Texas (RRC), December 2019 was a milestone for natural gas production in Texas, reaching one of the highest peaks in decades at 914.49 million cubic feet (MMCF). That same month, amid record production, flaring reached one of its lowest volumes for the year at 14.57 MMCF – slightly higher than May’s record low of 14.45 MMCF, representing a nearly 15% decrease from the 2019 flaring volume average. Texas producers have continued to improve flaring, particularly in the Permian where flaring intensity – the amount of gas flared for every barrel of oil equivalent of oil and gas produced—  decreased by 66% during the record high production in the region between 2019 and the end of 2022.

Flaring reduction trends continued throughout 2023. In March, production in Texas peaked at 1,040.54 MMCF marking the year’s lowest flared volume at 8.03 MMCF. By September, the flaring rate decreased to 1.14% indicating that over 98% of gas produced in Texas was effectively utilized, according to the RRC. December was also among the highest producing months of the year in the state, reaching 1,043.15 MMCF with flaring volumes also significantly reduced to 8.70 MMCF.

Successful reductions in flaring reached record lows in 2024, while production remained high. This past March, Texas hit its second-highest production level of the year, while also setting one of the lowest flared volumes of the decade, reaching 6.65 MMCF. In April 2024, flaring fell even further, hitting a new decade low of 6.63 MMCF, significantly lower than the 2023 and 2019 flared volume averages of 10.17 MMCF and 17.13 MMCF, respectively.  On a percentage basis, the flaring rate was 0.78% in April, meaning more than 99% of gas produced in Texas was being beneficially used. 2024 data shows nearly a 50% decrease in flared volumes over the past five years for the Lone Star State.

Producers in the United States and Texas are continuously demonstrating their commitment to meeting energy demand while reducing emissions through strong operational practices likes reductions in flaring. And while the industry and its people remain committed to seeing continued reductions in emissions, they require the legislative and regulatory support to advocate for policies, such as the buildout of additional pipeline capacity, that enable the industry to continue performing successfully.