North Dakota flaring crackdown may slow oil field growth

North Dakota is cracking down on flaring via strict rules that may slow oil field development in areas far from pipelines and effectively reinforce the competitive advantage enjoyed by companies that already have taken steps to curb the wasteful burning of natural gas.The no. 2 oil producing state now requires energy companies to submit a plan to capture natural gas that could be released by a new well when filing for permits; new rules for existing wells are expected to be announced July 1 with a goal of reducing the amount of gas flared to 10% by 2020 from ~30% today.Continental Resources CLR, Marathon Oil MRO and Hess HES say they are already working to cut flaring, recognizing they are burning a product that could be sold.New rules could boost demand for products from Chart Industries GTLS, which makes small liquefaction equipment, and Capstone Turbine CPST, a maker of small power plants, Raymond James analyst Pavel Molchanov says.

via North Dakota flaring crackdown may slow oil field growth – Continental Resources, Inc. NYSE:CLR | Seeking Alpha.

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