In the October 2015 edition of MOGM we see application and permitting activity continue to be slow keeping us on pace to be another of the slowest years of permitting activity in Michigan history. Two more original Collingwood HVHF wells were plugged this month dropping a couple more nails in the coffin of the Collingwood era in the Michigan Basin. Click through to read the October 2015 MOGM.
Matt,
Thanks for another informative edition of RMP’s Michigan Oil & Gas Monthly.
As for flared gas, I still don’t understand why owners of these wells cannot or, perhaps “will not” capture this excess gas. Is it cost prohibitive, or? It seems as if it would be pretty simple to stick a tube over that flared well and pump it into some type of container and sell it. What am I missing? As you pointed out, it is such a waste to see all that gas literally going up in smoke.
Thanks again for the interested read, and keep up the great work, Matt!
Regards,
Steve Krause
Energy production is for profit first and energy second. If it costs money, it hurts profit which trumps all else. GasTechno has a solution to turn that stranded methane into methanol which can get the energy to market in a cost effective manner which can be a win-win over the current situation for many operators. To pipe the gas to market would be a money loser for the operator because the infrastructure cost outweighs the revenue – simple as that. RMP tries to spotlight this waste to challenge the status quo as not good enough. There is room for improvement and we can put pressure on our elected officials and regulators so that they might craft legislation or rules that create incentive for Michigan jobs and less waste without unfairly taxing the operator such that the operator would no longer want to do business in Michigan.