Wasted gas robbing Louisiana

Louisiana’s oil and gas producers allowed more than 27B cubic feet of methane, the largest component of natural gas, to escape from leaks, flaring and venting in 2019, Synapse Energy Economics said in a report commissioned by the Environmental Defense Fund and Taxpayers for Common Sense. The report comes as state leaders consider new limits on methane waste. In March, the Department of Natural Resources proposed rules that would prohibit flaring and venting during routine drilling and production operations at well sites. More than 80% of the gas loss was from leaks at the 31,000 active wells and other O&G infrastructure in Louisiana. Nearly 19% of wasted methane came from flaring. The colorless, odorless gas contributes to smog, a pollutant that exacerbates asthma and respiratory illnesses. Methane has a greater climate-altering potential than carbon dioxide. “Methane flaring and venting is bad for the environment, the state economy and state budget,” said Ned Randolph, a consultant with the Louisiana Budget Project. “It robs all of us of important revenue which needs to be made up by other taxes.” O&G producers don’t have to pay taxes or royalties on wasted gas. In 2019, the lost potential revenue for Louisiana amounted to $2.5M, according to the report. (NOLA.com 04/13/23)