pages 48-49_THIS ONE 3/6/2020 12:07 PM Page 2 Using Associated Gas To Power On-Site Operations Provides Compelling Benefits By Mike Mayers and Josh Haugan HOUSTON-U.S. tight oil plays have dramatically shifted the landscape in global crude oil markets. But these highly productive reservoirs do not yield only oil and liquids. From North Dakota to West Texas, dry natural gas production is on the rise. In fact, growth in natural gas output easily is outpacing growth in oil production in the very basins that have been the epicenters of the tight oil revolution. In the Williston Basin, the North Dakota Industrial Commission's Oil & Gas Division reports that gas production has increased by one-third since December 2017, from 2 billion to 3 billion cubic feet a day. That increase was 14% greater than the rate of oil production growth during the same period. Permian Basin gas production has grown even faster, jumping by 38% since 2017 and outpacing by nearly double digits the Permian's world-leading growth in oil production during that time frame, according to statistics from the Texas Railroad Commission. What to do with all the associated gas? Historically, the practical alternatives to shipping on pipelines have been limited to flaring and reinjection for pressure maintenance. Producers now have a viable new option: "gas-to-wire" remote generation technology to power on-site production and processing equipment independent of the electric utility grid. This strategy gives operators a highly beneficial outlet for stranded or low-value associated gas production without requiring long-term pipeline capacity commitments while also eliminating the cost of running utility power service to remote production sites. MARCH 2020 49