The pandemic has curtailed associated gas production in the Permian basin, temporarily relieving some gas flaring, but the basin could return to record gas production levels by the end of 2021. By 2023, the rate of gas flaring could increase substantially.
Starting next year, drilling activity begins to resume in the Permian, assuming WTI stays above $45 per barrel, according to Rystad Energy. The increase in drilling leads to more associated gas output. The pandemic has knocked gas production down, but by late 2021, Permian gas production will be back to pre-pandemic levels – and it will continue to rise from there.
Rystad expects gas output to continue to rise, reaching 16 billion cubic feet per day (bcf/d) by 2023, which, to be sure, is 2 bcf/d below the firm’s prior forecast from earlier this year.
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Source: Oil Price