Turning Waste into Profits

Comments (4)

  1. Dave, ND says:

    Enjoyed the article and hope that more progress can on this type of equipment in the oil industry. The issue that I have is with your comment “Most of these wells are in the middle of nowhere. And it’s not like they can connect to a nearby power poll.” Our family farm in is Mountrail County in ND and while we may be in the middle of nowhere, power lines are plentiful and almost 100% of the wells are connected. There are areas short on power but a significant amount of electrical infrastructure is being built into the area. Additionally, we have signed easements that allowed multiple gas gathering lines to be built in our are and the infrastructure has been placed in the ground. Initially we practically gave the gas companies the easements for the promise that the flaring would be virtually eliminated. This did not happen. Our country side is still lit up with flares going at every well. I do believe the statement that “The options are limited and expensive.” For the gas that is captured and reported on our royalty statements, 75% to 80% of the gross revenue is deducted for taxes and transportation with the tax portion being very small at 3% to 5%. There have been times when the gas royalty on specific wells has been negative. From a mineral owner persective, they could have all the gas if the flaring would stop.
    Flaring is an interesting issue because it persists even where gathering infrastructure and power exist.
    In our area, the companies that you mentioned could not make it by providing electrical service to the odd well not connected to power. To be successful they need to complete with the delivered cost of power to the well. If they could provide a less expensive product, oil companies would make them a part of there buildout strategy. However, without some addition solutions to increase the value of this gas, it seems that flaring will continue regardless of who provides the power.
    Thanks for your articles. They are informative.


  2. Tom Murphy says:

    I’ve been keeping an eye on capstone for a while. It’s hanging in there and is currently $1.25. Is there anything new? I suppose the is the a good buy at $1.25 is a no brained. Any comments anyone?


  3. a wegweiser says:

    Golly – I have been observing the “flaring” for decades – especially when I drove up the NJ Turnpike and wondered by this was going on in a place which requires enormous quantities of energy to exist. Of course, the answer was cut costs and magnify profits to Hell with waste and fouling of the atmosphere. Now some genius has awakened and found a way to use all this waste. The air we all breathe – including energy corporate executives – will be grateful.


    Burns Foster Reply:

    It’s exciting, isn’t it? Thanks for reading.


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