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Permian gas flaring could increase from 2023 if COVID-19 delays new pipelines
Oil & Gas Journal: Permian basin gas output is expected to rebound in second-half 2020 and will remain robust for years, but the low-investment environment created by COVID-19 will likely postpone approvals for key pipelines which may necessitate increased flaring from 2023, Rystad Energy projects.
In second-half 2020, and into 2021-2023, Rystad Energy expects Permian gas production will see a rapid increase assuming a $45-50 WTI environment, which is the base case. In the short-term, the reactivation of production is expected to push basin-wide gas output back to 11.4 bcfd in September, although further growth might be delayed until mid-2021 when activity is expected to recover substantially.
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