Railroad Commission disputes media reports of major energy production issues. Critics are still wary.
After news organizations sounded the alarm of another winter crisis in Texas, the Texas Railroad Commission and Texas Oil and Gas Association say there's no reason to worry.
(Photo by Delfino Barboza on Unsplash)
Several news organizations have trumpeted concerns of another Texas winter crisis after the natural gas industry experienced a temporary drop in energy production earlier this month.
The Texas Railroad Commission and Texas Oil and Gas Association have said there’s no reason to worry, but some environmental organizations and watchdog groups are still skeptical.
“Many media reports beat the warning drums of a dire situation with the state’s natural gas production last weekend — that is incorrect,” the Railroad Commission’s Jan. 8 reads. “Power stayed on. Lights were on. And gas kept flowing to residences last weekend.”
The agency’s comments came days after Bloomberg reported on large sums of wasted gas in early January. Citing data filed with the Texas Commission of Environmental Quality, Bloomberg wrote that weather-related shutdowns forced natural gas producers to flare nearly 1 million cubic feet of gas on Jan. 2.
Despite the agency denying any major production issues, Virginia Palacios, executive director of the Railroad Commission watchdog group Commission Shift, says there are still many reasons Texans should worry.
“The fact that so many facilities had to release gas because of weather-related shutdowns is still an indication that the natural gas supply chain is not sufficiently weatherized to protect us against a severe winter storm like Winter Storm Uri,” Palacios wrote in an email.
She said it’s possible there was more gas-flaring “we are not even aware of” because smaller producers don’t report emissions data to the TCEQ.
Although the Railroad Commission confirmed that production can fluctuate at any given time, it denies that "production decreased anywhere near the extent that has been reported.” The agency also challenges the source for data, called pipeline nominations, used by Bloomberg and other media outlets.
According to the state agency, pipeline nominations do not portray an accurate representation of oil and gas production.
“That approach is speculative and does not paint a complete picture, especially given that gas trading markets were closed for the holiday weekend,” its statement reads.
But because the Railroad Commission of Texas only collects production data monthly, Palacios said pipeline nominations are the “next best proxy we are aware of for daily resolution.”
“We’d like to see the Railroad Commission come up with a system for collecting real-time production, venting, and flaring data from operators, much like your home electric provider remotely collects data on your electricity usage using a SMART meter,” she wrote in an email.
In a similar statement to that of the Railroad Commission, TXOGA asserted that “recent media reports and industry hacks have been exaggerating data about the natural gas system related to the recent cold weather” and rejected the reports of a near-25% drop in natural gas production.
Citing data from the U.S. Energy Information Agency, TXOGA said the estimated weekly average natural gas production in the Permian Basin in West Texas and Southeast New Mexico fell by about 5% week-over-week. But it also acknowledged that RBN Energy estimated a 22% drop in production in the Permian Basin.
“Whatever the actual number is for all of Texas when all producing basins are included, the drop in natural gas production is not unique to Texas nor was the Texas production decline anywhere near a major issue for overall gas availability for those who plan ahead and utilize the vast amount of natural gas storage,” TXOGA’s statement reads.
The organization added that the market would have otherwise “reflected a shortage in the spot-pricing” if there was a major issue.
Palacios said the two organizations have chosen to confuse data and are “more concerned with protecting the public image of the oil and gas industry.”
“While the drop in gas production experienced in early January did not cause power outages, it indicates that many facilities in the Permian Basin are not prepared to operate in freezing weather,” she wrote in an email. “If we experience a severe winter storm of a similar magnitude to Winter Storm Uri before operators have weatherized their equipment, the grid could be at risk again.
“More lives could be lost, and more costly damages could be incurred. No one wants to repeat the experience of living for several days without heat, sanitation, and clean water,” she added.
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She covers all things nature, outdoors, climate, wildlife & our greater earth with the occasional arts & culture piece.