MIDLAND, TEXAS (Big 2/ Fox 24)- According to the President and CEO of Latigo Petroleum, if we want to decrease flaring in the Permian Basin we must put more money into pipeline infrastructure.
“We need more pipeline take away capacity and again they have to ship that out to with LNG, they convert the natural gas into LNG, and they’ll ship that out away on supertankers too,” says Kirk Edwards.
However, Stephen Robertson says, that doesn’t have to mean a natural gas pipeline and although this new EPIC pipeline is for crude oil it will help decrease flaring in the Permian Basin.
“Specifically crude, that’s what people are drilling for and trying to produce out here and natural gas is kind of a side product being able to have a pipeline in place that can take so much crude out of the Permian Basin is going to extremely helpful. So much of that production was already out there looking for that takeaway capacity,” says the Executive Vice President of the PBPA.
Adding that one of the biggest challenges with growth in West Texas is how far behind infrastructure is in comparison to production.
“As these pipelines start to come online and help alleviate some of the strains it’s definitely going to be positive. As we get road projects put in place as we increase electrical transmission and distribution that’s going to benefit everybody out here and it’s also going to help with those side issues like flaring.”
Why not invest in a pipeline strictly for natural gas? Edwards says “there’s a lot more take away for oil than there is for natural gas out of the Permian right now. People that are making the investments want to get their crude out first because it’s a much more valuable product than natural gas. Hopefully, at some point, the natural gas capacity will pick up to where the crude oil capacity is for these pipelines where these guys don’t have to flair anymore.”