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An historical political economy analysis and review of Texas oil and gas well flaring laws and policy

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  • Willyard, Katherine Ann

Abstract

Flaring (i.e., burning natural gas extracted at an oil or gas well) is an economically wasteful and environmental harmful industrial practice. Although initially banned in Texas, Texas Statewide Rule 32 currently allows oil wells to obtain a permit to legally flare gas. Through a thick description based on archival research, this paper explains: (1) how Texas flaring regulations emerged and weakened over time, (2) why Texas flaring regulations weakened, and (3) the implications of formal policy changes. This paper argues historical political-legal developments created new opportunities for companies to legitimately flare extracted natural gas. As new shale oil and gas development occurs in previously unreachable areas, incentives for immediate profits often outweigh the benefits of investing in the infrastructure and technology necessary to use extracted natural gas for productive purposes. This paper concludes that waste and pollution by oil and gas industry flaring practices can be minimized if state law and administrative code is changed to eliminate legal opportunities for companies to routinely flare natural gas and provide incentives for companies to immediately invest in the technology and infrastructure necessary to collect, store, and/or transport extracted natural gas to be used for energy production.

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  • Willyard, Katherine Ann, 2019. "An historical political economy analysis and review of Texas oil and gas well flaring laws and policy," Energy Policy, Elsevier, vol. 128(C), pages 639-647.
    • Handle: RePEc:eee:enepol:v:128:y:2019:i:c:p:639-647
    DOI: 10.1016/j.enpol.2019.01.046
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    References listed on IDEAS

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    1. Heffron, Raphael J. & McCauley, Darren, 2017. "The concept of energy justice across the disciplines," Energy Policy, Elsevier, vol. 105(C), pages 658-667.
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    1. Li, Boying & Zheng, Mingbo & Zhao, Xinxin & Chang, Chun-Ping, 2021. "An assessment of the effect of partisan ideology on shale gas production and the implications for environmental regulations," Economic Systems, Elsevier, vol. 45(3).
    2. Okoro, Emmanuel E. & Adeleye, Bosede N. & Okoye, Lawrence U. & Maxwell, Omeje, 2021. "Gas flaring, ineffective utilization of energy resource and associated economic impact in Nigeria: Evidence from ARDL and Bayer-Hanck cointegration techniques," Energy Policy, Elsevier, vol. 153(C).
    3. Rodrigues, A.C.C., 2022. "Decreasing natural gas flaring in Brazilian oil and gas industry," Resources Policy, Elsevier, vol. 77(C).
    4. Tim Slack & Vanessa Parks & Lynsay Ayer & Andrew M. Parker & Melissa L. Finucane & Rajeev Ramchand, 2020. "Natech or natural? An analysis of hazard perceptions, institutional trust, and future storm worry following Hurricane Harvey," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 102(3), pages 1207-1224, July.
    5. Okoye, Lawrence Uchenna & Adeleye, Bosede Ngozi & Okoro, Emmanuel E. & Okoh, Johnson I. & Ezu, Gideon K. & Anyanwu, Felicia A., 2022. "Effect of gas flaring, oil rent and fossil fuel on economic performance: The case of Nigeria," Resources Policy, Elsevier, vol. 77(C).
    6. Bhaskar Sinha & Supriyo Roy & Manju Bhagat, 2020. "Sustainable Green Policy by Managing Flare Gas Recovery: A Case with Middle East Oil and Gas Industry," Vision, , vol. 24(1), pages 35-46, March.

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