The Shale Oil revolution of the 21st century provided the ability to tap into and extract hydrocarbons that had been inaccessible or uneconomical to extract up to that point. The Bakken is one of the affected oilfields in the country where extraction wasn’t economical previous to lateral drilling technology.
Unfortunately, here in the Bakken as well as other Shale Plays throughout the country, the associated natural gas that came along with the oil was more of a liability than an asset to producers. Transporting the gas to a production facility to be processed is a historically expensive and arduous process often times leaving the producer financially upside down.
Pipeline is extremely costly, even more so than typical in the Badlands of Western North Dakota, leading to a lag in the infrastructure needed to properly capture associated gas. This, along with the fact that production from a Bakken oil well is volatile and unpredictable which makes it difficult to have properly sized equipment to match production from a section of field at any given time lead to North Dakota having a 7.1% Flaring Intensity (Flared Gas/Total Produced Gas), which is more than 7x the rate of the next highest State (NM) flaring intensity in the nation.
Over the last decade on-site gas capture and processing has become somewhat easier and more economical, but not to the point that it incentivized gas capture as much more than an environmental obligation.
This has led to excessive flaring and venting, and a failure on the part of the Oil and Gas industry to provide the expected stewardship of the land and environments they are active in.
At Fredericks Custom Solutions, we are solely focused on the most efficient, economical and environmentally responsible ways to utilize and monetize Natural Gas
We combine Compression and Gas Conditioning systems with Mobile Gas Recovery Units or MRUs (NGL, CNG, and LNG) alongside on-site power generation using the lean and clean tail gas from the processing equipment for feedstock, that either gets sold back to the grid or powers on-site containerized Data (BTC) Mines to capture and utilize as much of the available gas as possible. A typical NGL Recovery Unit will strip up the C3+ hydrocarbons out of the available gas, resulting in the remaining gas being sent to the flare. By combining Gas Recovery and Power Generation we can use up to 100% of available flare gas on a single site, often producing a higher $/mcf value than market rate.
Associated Gas in Shale Formations: Liability or Asset? A Paradox
Source: Rystad Energy
