Our country has recently gone through an extensive growth spurt in shale exploration and oil production.  In the most recent two years US oil production has increased by over 10% per year according to the EIA.  Notice the sharp incline over the last few years of the graph.

Crude Oil Production

This exploration results in a number of accompanying challenges.  One of those challenges is what to do with the natural gas that is produced as a result of oil exploration.  In an article entitled “Why will Bakken flaring not fade away?” published by RBN Energy in September of 2012, right at the beginning of this rapid production expansion, oil wellhead gas flaring was addressed along with the reasons why it would not end soon.  Natural gas flaring is a necessary evil.  Without it, oil exploration would cease, and vast amounts of usable energy and resources would go unrealized.  Unfortunately, wellhead natural gas flaring is an unwanted byproduct of this.  V CORE offers a solution for mitigating this problem in the form of its own Micro-LNG systems.  These units are proportionately sized to be mobile enough to move on occasion, and also to be a economic alternative to pipeline infrastructure or larger LNG systems.

In addition to the environmental impacts of flaring natural gas, there are financial impacts for companies who are forced to reduce their production or pay penalties based on restrictions to the amount of gas that can be flared.  In ND, the industrial commission authority, specifically the oil and gas division, specifies gas flaring limitations for wellhead gas and caps them by imposing deadlines to reduce production until a use for the natural gas can be found.  The maximum amount of time granted to develop a use for the gas is 1 year.  At this point the only way to continue to operate by flaring gas is to pay costly penalties and taxes.  V CORE Micro-LNG systems can help solve the issue by providing a way for remote oil wells to capture the natural gas being produced as part of oil drilling.  They can allow users to realize the maximum potential of remote wells, while paying back the capital costs with avoided taxes and penalties, as well as the sales revenue from the captured commodity.

V CORE is poised to help those within this market meet their environmental and economic challenges.  Visit our Micro-LNG page and contact us if you have any questions.