April 12, 2026 — Natural Gas Flaring Reduction Efforts Gain Momentum in Permian.
The relationship between rig count and production has shifted significantly over the past decade. Drilling and completion efficiency improvements mean fewer rigs are needed to generate the same production growth. Average well laterals have extended from 5,000 feet in the early 2010s to more than 10,000 feet today, and proppant loading has increased substantially. These technical advances partially offset the decline in rig count.
Capital discipline from operators means rig counts are unlikely to spike as aggressively as in prior oil price cycles. Major publicly-traded operators have committed to modest production growth and significant shareholder returns, backed by investor pressure for financial returns over volume growth. Private operators without public market accountability have been more responsive to price signals, but their scale is insufficient to replicate the 2014-2018 production expansion by themselves.
Flaring Reduction Progress
Natural gas flaring in the Permian Basin has decreased by 40% since 2019 as operators invest in gathering infrastructure and pipeline capacity. New regulations and ESG commitments have driven the industry to capture gas that was previously burned off during oil production. The volume of gas flared has fallen from 800 million cubic feet per day to under 480 million, with further reductions expected as new midstream projects come online.