Environmentalists urge action on gas leaks, venting, and flaring, which harm both the environment and state revenue.

A recent study released by environmental and government watchdog organisations reveals that Louisiana lost over $82 million in natural gas in 2019, primarily due to leaks, venting, and flaring at production sites. The report, published by the Environmental Defense Fund, indicates that more than 27 billion cubic feet (760 million cubic meters) of natural gas were wasted that year, contributing to both significant economic loss and environmental harm. The state’s tax and royalty revenue was reduced by an estimated $2.5 million as a result.

Methane, a major component of natural gas, is a potent greenhouse gas, and its release into the atmosphere exacerbates climate change. The study found that over 81% of the wasted gas was due to leaks, with less than 1% released through purposeful venting and 19% lost through flaring. The process of venting or burning gas is often carried out for safety or economic reasons but results in substantial waste.

The report states that the amount of lost gas could have met more than two-thirds of Louisiana’s residential natural gas demand for an entire year. The research was conducted by Synapse Energy Economics Inc., a consulting firm with various environmental and governmental clients.

This study comes as the federal Environmental Protection Agency considers new regulations to prevent gas releases, including mandatory inspections of well sites. Louisiana’s Department of Natural Resources is also working to develop its own rules to address the issue, with an emphasis on reducing gas emissions, according to spokesperson Patrick Courreges.

Courreges noted that the state is examining successful regulations from other oil-producing states and aiming to apply similar measures in Louisiana. While he did not comment on the study’s findings, he highlighted the state’s goal of ensuring gas remains in the pipelines and is put to productive use.

In addition to addressing ongoing leaks from active sites, the state and federal authorities are focusing on “orphan wells”—abandoned, non-producing wells that continue to leak harmful contaminants. Environmental advocates, including Autumn Hanna of Taxpayers for Common Sense and Jan Moller of the Louisiana Budget Project, have called for updated policies to curb the waste of valuable natural gas.

Hanna remarked, “Outdated policies are preventing billions of dollars in natural gas from reaching the market at a time when both energy security and state budgets are under pressure.” Moller emphasised the impact of this waste on state revenue, adding that the funds lost to gas waste must be replaced by other taxes or result in the loss of funding for critical state programmes.