The Bakken Shale, a stronghold of crude oil, could add to the already accelerating growth of U.S. natural gas production, according to a recent report from Barclays Commodities Research.
The report cites a new rule in North Dakota that requires producers to cut gas flaring to 95% by 2020. In January, North Dakota captured only 64% of natural gas associated with crude oil production.
The report expects the newly captured volumes to result in greater gas output as midstream infrastructure catches up with the rapidly growing play.
“If gas output were to remain at January 2014 levels for the rest of the year, and the share of captured gas were to rise from 64% to 75%, the output boost would amount to 140 MMcf/d [million cubic feet per day],” according to the report. “Assuming that production growth matches last year’s pace in 2014, but captured volumes rise to 75% over the course of the year, the state’s natural gas output could rise 250 MMcf/d, y/y [year-over-year] in 2014. Similar production growth and a further increase of captured volumes to 85% would yield y/y production growth of 330 MMcf/d for 2015.”
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