Who Is Burning Money and Throwing It In the Air?: A Quantitative Analysis of Disproportionality of Texas Oil and Gas Extraction Facility Venting and Flaring Practices in 2012

While overall air pollution has steadily decreased in the United States since the 1970s, air pollution from the oil and gas extraction industry has dramatically increased rural population’s exposure to toxic air emissions... [ view full abstract ]

While overall air pollution has steadily decreased in the United States since the 1970s, air pollution from the oil and gas extraction industry has dramatically increased rural population’s exposure to toxic air emissions since the fracking boom. In fact, venting (i.e., releasing or leaking natural gas into the atmosphere) and flaring (i.e., burning extracted natural gas) by the oil and gas extraction industry is the largest industry source of volatile organic compounds that create air toxins and form smog. While venting and flaring is a growing problem, due to the inaccessibility of public information, little is known about which types of facilities and operators are most responsible for producing these toxic air hazards. Using a sample of 126,862 oil and gas extraction facilities producing in Texas in 2012 and the 4,608 companies that directly operate them, I analyze how venting and flaring at oil and gas extraction facilities is related to the characteristics of facilities, operators, and the political environment in which they are embedded. I overcame data limitations by creating a geodatabase using Texas Railroad Commission, United States Energy Information Administration, and American Community Survey data. Findings suggest that venting and flaring is not a uniform practice of all oil and gas extraction facilities. Instead, only 5% of facilities and 10% of operators engage in venting or flaring. A two-part hurdle regression model shows venting and flaring practices are consistently associated with facilities with new drilling, few nearby wells, large oil production, and permitting, and operators that produce more oil. Findings suggests economic incentives and state policy are key factors contributing to the environmental decisions of organizations. I suggest political will be applied to enact economic incentives and state policy to reduce the pollution and waste caused by venting and flaring.