| NEW YORK, March 1
NEW YORK, March 1 Continental Resources,
one of the largest oil producers in North Dakota's prolific
Bakken shale, said it had reduced the amount of natural gas it
flared last year.
Flaring involves burning off natural gas found while
producing oil and is done mostly when there is no infrastructure
such as gathering lines from a well in place to deliver gas to a
pipeline which would then bring the gas to an existing market.
The process can add more carbon dioxide into the atmosphere,
which has been linked to climate change.
"During December 2012, the percentage of our natural gas
production flared in North Dakota Bakken was approximately 10
percent compared to approximately 20 percent in December 2011,"
Continental said in a U.S. Securities and Exchange form filed on
The company said its "ultimate goal" is to reduce flaring to
as close to zero percent as possible.
Ceres, a non-profit group representing environmental and
socially conscious investor groups said on Friday one of its
clients, Mercy Investment Services, had filed a shareholder
resolution with Continental requesting that they adopt measures
to reduce flaring.
The resolution was withdrawn earlier this year after
investors and the company had a discussion.
"It's great to see that they have this goal out there now
and we hope that their peers in the industry will follow suit,"
said Ryan Salmon, manager of the oil and gas program with Ceres
in Boston, Massachusetts.
One of the reasons why gas is flared in North Dakota is
because energy production has grown so quickly in such a short
amount of time that infrastructure has been unable to keep pace.
The gas being produced is "liquids-rich" and gas processing
facilities are needed to "strip" the gas of the liquids and send
the "dry" portion to market via pipeline.
"Production is increasing." said Alison Ritter, a
spokeswoman for the North Dakota Industrial Commission. "It's a
matter of trying to keep up with wells we're adding as well as
have operators keep up with infrastructure."
Oil output in North Dakota, the number 2 crude producing
U.S. state, rose to a record high in December of 768,853 barrels
per day, state data showed.
Natural gas flaring has since decreased. In September 2011,
some 36 percent of natural gas volumes were flared, compared to
29 percent in December 2012, Ritter said.
A higher percentage of Continental's production came from
natural gas last year, "due in part to the connecting of new and
existing wells in North Dakota to gas processing plants," the
company said in the SEC filing.
A Continental spokeswoman did not respond to requests for