Fossil Alaska Natural Gas Flaring Energy OFFICE OF OIL & NATURAL GAS and Venting Regulations

The U.S. Department of Energy’s Office of Fossil Energy (FE) supports research and development of technologies that can reduce the volume of natural gas (e.g., methane) flared or vented (released) into the atmosphere during crude oil and natural gas exploration, production, processing, transportation, and storage operations. This fact sheet was created by FE to inform stakeholders on state-level production and regulatory activity regarding natural gas flaring and venting. FE’s research portfolio includes efforts to reduce methane (and other hydrocarbon) flaring through the application of improved technologies to capture and utilize small volumes of natural gas at remote locations, as well as technologies to reduce (primarily) methane release during midstream gas processing and transportation. Intermittent flaring that occurs as a result of routine well testing, production facility process shutdowns, or facility and pipeline infrastructure maintenance, are normal aspects of safe oil and natural gas production. Increases in domestic oil and natural gas production have resulted in significant infrastructure buildouts, however, natural gas pipeline capacity constraints have led to regional increases in the flaring of associated gas in some unconventional plays (e.g., Permian Basin in Texas and New Mexico and Bakken Shale in North Dakota) in order to enable oil production.

Alaska Producing barrels of unproduced heavy and viscous Basins and Plays oil resource on the North Slope. Because there is no natural gas pipeline connecting There are more than a dozen sedimentary the North Slope with markets to the south, basins either onshore or offshore Alaska associated gas produced on the North (Figure 1).The large majority of oil Slope is reinjected to maintain pressure production has come from the North in the oil reservoirs. The U.S. Geological Slope’s Colville Basin, although there has Survey estimates that technically been some oil and gas production from recoverable natural gas resources in the southern Cook Inlet Basin. The Alaska unconventional shale reservoirs in Division of Oil and Gas reports that about Alaska total about 40 Tcf, but the cost of 230 trillion cubic feet (Tcf) of natural operation and lack of nearby markets have gas and 45.5 billion barrels of crude oil hindered development. According to the remain undiscovered but technically U.S. Energy Information Administration recoverable from conventional reservoirs (EIA), Alaska’s proved reserves are 2.02 Figure 1: Alaskan producing basins in Alaskan basins. Roughly 40 percent (from Swenson, R., Sedimentary Basins billion barrels of oil and 6.6 Tcf of natural of this gas and a third of this oil are on of Alaska) Source: State of Alaska gas (2017). the North Slope. Research has indicated that there is an additional 24 to 30 billion

Alaska Oil and Natural Gas Statistics (EIA)

2013 2014 2015 2016 2017 2018 Crude Oil Production (Average Thousand Barrels/Day) 515 496 483 490 494 479 Natural Gas Gross Withdrawals and Production 7,898 7,680 7,684 7,859 7,895 N/A (Average MMcf/Day) Natural Gas Gross Withdrawals and Production 15.5 15.8 13 20.7 18.5 11.6 ** (Vented and Flared) (MMcf/Day) Natural Gas Gross Withdrawals and Production 7,722 7,457 7,462 7,672 7,722 N/A (Oil Wells) (Mcf/Day) Natural Gas and Gas Producing Oil Wells (Thousands) 2.3 2.4 2.4 2.4 2.4 2.1 **

MMcf – million cubic feet Mcf - thousand cubic feet * All numbers are for Onshore activity ** Data from Alaska Oil and Gas Conservation Commission

2017 ranking among 32 U.S. oil and natural gas producing states — Oil: 3 Natural Gas: 3

OFFICE OF FOSSIL ENERGY OFFICE OF FOSSIL ENERGY

Alaska Key Regulations 25.235, Gas Disposition also prohibits facility operations, repairs, upgrades, Associated with Flaring flaring except in the case of emergency or testing procedures. Section 20 or system testing. (Relevant subparts of AAC 25.235(d)(5)(b and c) stipulates and Venting this legislation include b, c, and d). This that the AOGCC may also authorize The Alaska Department of Natural regulation stipulates operators must report flaring for safety in emergencies (part Resources manages all state-owned any release of gas (other than incidental b) and if it is necessary to prevent the land, water, and natural resources. The de minimis venting) to the AOGCC, with loss of ultimate recovery (part c). Division of Oil and Gas develops and a written supplement including volumes manages the state’s oil and gas leasing vented or flared for any incident that Alaska State programs; identifies prospective lease exceeds one hour. Additionally, operators Points of Contact areas; and performs geologic, economic, must minimize the volume of gas released Alaska Department of Natural and environmental analyses, among other by utilizing good oil field engineering Resources: Division of Oil and responsibilities. The division conducts practices. This regulation provides Gas competitive oil and gas lease sales and clarification that any gas released, Contact this office for more information monitors collection of all funds resulting burned, or permitted to escape into the air on oil and gas operations in Alaska. from its programs. It is also responsible for constitutes waste, except in the following the development of the state’s geothermal authorized situations: Website: https://dog.dnr.alaska.gov/ and coalbed methane resources. About/DOG101 • Flaring or venting gas for a period not The Alaska Oil and Gas Conservation exceeding one hour as the result of an Email: [email protected] Commission (AOGCC) is an independent, emergency or operational upset. Phone: 907-269-8800 quasi-judicial agency of the State of • Flaring or venting gas for a period not Alaska Oil and Gas Conservation Alaska. It is established under the Alaska exceeding one hour as the result of a Commission Oil and Gas Conservation Act (AS 31.05). planned lease operation. Title 20, Chapter 25 of the Administrative • Flaring pilot or purge gas to test or Contact the AOGCC for information about Code outlines its regulatory authority. fuel the safety flare system. Alaskan oil and gas regulations. The Alaska Oil and Gas Conservation Act • De minimis venting of gas incidental (Section 31.05.095) prohibits waste of oil Website: http://doa.alaska.gov/ogc/ to normal oil field operations. and natural gas. This includes the release, Email: [email protected] • Within 90 days after receipt of the burning, or escape into the open air of Phone: 907-279-1433 gas, from a well producing oil or gas, report required under (b) of this unless authorized by the AOGCC [Section section, the commission will, in its 31.05.170(15)(H)]. Operators must report discretion, authorize the flaring or Visit energy.gov/fe/state-natural-gas- any instance of wasted oil or natural gas venting of gas for a period exceeding flaring-and-venting-regulations for a to the AOGCC along with a statement of one hour if the flaring or venting is digital version of this fact sheet that compliance actions. Alaska Administrative necessary for safety in emergencies; includes hyperlinks to information Code (AAC) Chapter 25 Section 20 AAC for the prevention of loss; and for sources.

For more information, visit: InformationInformation current current as of as April of May 10, 2019. Fossil fossil.energy.gov Energy OFFICE OF OIL & NATURAL GAS